MASTER 

NEGATIVE 
NO.  94-821 57- 9 


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Author: 


Williams,  Louis  Lafayette 


Title: 


Theoretical  and  practical 
book-keeping 

Place: 

[Rochester] 

Date: 

[1884] 


MASTER    NEGATIVE   # 


COLUMBIA  UNIVERSITY  LIBRARIES 
PRESERVATION  DIVISION 

BIBLIOGRAPHIC  MICROFORM  TARGET 


ORIGINAL  MATERIAL  AS  FILMED  -    EXISTING  BIBLIOGRAPHIC  RECORD 


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(Yfilliams,  Louis  Lafayette 3  1841-1919. 

Theoretical  and  practical  book-keeping,  for  uso 
in  business  colleges  and  in  common  schools,  high 
schools  and  academies,  and  for  self-instruction. 
(Rochester,  N.  Y. ,  Andrewsj  1884. 

160  p.   forms.   30^^^. 

On  cover:  Stewart  &  Hammond's  business  college 
book-keeping,  Trenton,  N.  J. 

Edition  of  1890  has  title:  The  new  theoretical 
and  practical  book-keeping. 

"Entered  ...  by      V^lliam  &  Rogers,  in  the 
office  of  the     f^   Librarian  of  Congress." 


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BUSINESS  COLLECiE 
BOOK-KEEPING 


TRENTON,      -      -      N.J 


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THEORETICAL 


AND 


PRACTICAL 


BOOK-KEEPING, 


FOR    USE    IN 


BUSINESS  COLLEGES, 


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AND    IN 


•  •     •       • 

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«       «    to  a  • 


COMMON  SCHOOLS,  HIGH  =  SCHOOLS  AND  ACADEMIES, 


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Self-Instruction. 


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1884. 


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Entered  according  to  Act  of  Congress,  In  the  year  1«B, 

By  WILLIAMS  &  ROGERS, 

In  the  office  of  the  Ljbrjwiap  of  Cpngresa.  at.Washlngton,  D.  fJ 


» *      t    ■     t 

at       »       ■  «  •       —     '      ■       ■ 


-I — 


t       • «  »      f 


E.  R.  Androwa,  Printer  and  n»M)kbinder,  Rochester,  N.  V. 


PREFACE. 


VE  do  not  claim  that  we  have  enunciated  any  new  principles  in  the  course  of  study  in  the  science  and  practice 
of  book-keeping  contained  in  this  work.  We  do  claim,  however,  that  we  have  arranged  those  abready 
established  in  such  a  manner,  and  accompanied  that  arrangement  with  such  clear  and  complete  explana- 
tions, as  will  insure  the  pupil  a  knowledge  of  the  subject,  practically  independent  of  the  instructor. 

While  we  have  studiously  avoided  unnecessary  theorizing,  we  have  endeavored  to  give  a  competent  reason  for 
every  step  to  be  taken,  believing  that  the  pupil,  if  he  have  the  ability  to  master  the  subject  under  any  circum- 
stances, wiQ  be  able  to  secure,  from  the  reasons  and  illustrations  given,  a  thorough  knowledge  of  the  science  of 
accounts. 

We  desire  that  the  student's  mind  shall  be  constantly  directed  to  the  matter  in  hand— that  of  learning  practical 
book-keeping— and  not  become  confused  by  abstruse  theories  that  can  be  of  no  possible  use  to  him  in  pursuing 
the  course  of  study,  nor  of  the  least  value  to  him  in  after  life. 

The  claim  of  this  work  to  superiority  over  all  other  publications  of  its  character  is  based,  particularly,  upon 
the  manner  in  which  the  transactions  selected  as  a  basis  of  the  student's  work  have  been  graded,  the  fullness  of 
explanation  of  every  step  to  be  taken,  the  placing  of  such  explanations  in  immediate  proximity  to  the  transactions, 
the  system  of  references  to  the  illustrations  adopted,  the  encouragement  to  progress  in  penmanship  afforded  by 
the  engraved  pages,  the  ability  of  the  pupil  to  rely  upon  himself,  and  the  material  lessening  of  the  labor  of  the 

^^^"'•-  THE  AUTHORS. 


DOUBLE  ENTRY  BOOK-KEEPING. 


«    • 


I 
4 


»  Book-keeping  is  a  record  of  business  transactions.  'The  object  of  such  record  is  to  enable  the 
proprietor  to  determine,  at  any  time,  the  true  condition  of  the  business. 

» There  are  two  methods  of  book-keeping  in  general  use,  Hermed  Single  Entry  and  Double  Entry. 
The  following  explanations  refer  to  the  Double  Entry  method. 

*  The  principal  books  used  are  the  Day  Book,  Journal  and  Ledger. 

•  The  Day  Book,  or  Blotter  as  it  is  sometimes  called,  contains  a  statement  of  the  business  transac- 
tions in  detail.  '  The  record  should  be  made  as  soon  as  the  transaction  takes  place, "  to  guard  against 
errors  which  might  be  occasioned  by  delay  in  making  the  entry. 

•The  Journal  contains  the  Debits  and  Credits,  taken  from  the  Day  Book,  and  arranged  in  a  form 
convenient  for  transferring  to  the  Ledger.  ''  Deciding  upon  and  arranging  the  debits  and  credits  in 
the  Journal  is  called  Journalizing.  "  In  every  journal  entry  the  debits  and  credits  must  be  equal. 
"The  Day  Book  and  Journal  may  be  combined,  "by  writing  the  particulars  regarding  the  transactions 
in  the  Journal,  in  connection  with  the  journal  entry. 

"The  Ledger  contains  the  final  results,  "which  are  exhibited  by  collecting  all  debits  and  credits 
having  the  same  name  under  one  heading.  "  Such  a  collection  of  debits  and  credits  is  called  an 
Account.  "An  account  has  two  sides,  "the  left  side  being  called  the  Debit  and  "the  right  side  the 
Credit.     *  Transferring  the  debits  and  credits  from  the  Journal  to  the  Ledger  is  called  Posting. 

«The  terms  Debit  or  Debtor,  and  Credit  or  Creditor,  may  be  abbreviated:  as,  Dr.  and  Cr. 

Other  books,  as  the  Cash  Book,  Bill  Book,  Order  Book,  Invoice  Book,  Sales  Book,  etc.,  will  be 
explained  hereafter. 

« In  Double  Entry  book-keeping  there  are  three  kinds  of  accounts  aside  from  an  account  with  the 
Proprietor:  accounts  with  Persons,  accounts  with  Property,  and  accounts  representing  Allowances 
made  by  us,  or  to  us,  for  Interest,  Discount,  Exchange,  Premium,  Storage,  Commission,  Expenses, 
etc.,  by  which  we  sustain  Losses  or  realize  Gains. 

Note.— While  it  will  be  necessary,  in  due  time,  for  the  Student  to  become  thoroughly  familiar  with  the  principles 
involved  in  the  rules  given  on  the  "following  pages,  he  can  do  so  much  more  easily  and  quickly,  and  with  a  better 
understanding  of  their  application,  if  he  learn  them  as  he  has  occasion  to  apply  them,  than  he  can  by  commuting 

them  to  memory  in  advance. 

The  Student,  therefore,  after  reading  carefully  the  following  rules,  examples  and  explanations,  may  proceed  with 
the  work  upon  his  books,  as  instructed  in  the  foot  notes  from  page  to  page.  Each  step  is  so  carefully  explained,  and 
the  references  so  fully  given,  that  he  should  have  little  difficulty  in  performing  the  work  correctly  and  understandingly. 

The  debits  and  credits  in  any  business  transaction  may  be  determined  by  the  following 


6 


TirV.onKTTrAL    and    PItArTK'AL    BOOK-KEEPItra. 


GENERAL    RULES    FOR   JOURNALIZING. 


4 


Tkrsoxs  AKK   ])KHIT'  ' 

^Whon  tlioy  get  into  our  (l(>l)t,  and 
'  Wlion  we  get  out  of  their  debt. 

**  1*K01'EUTY    IS    DkHITKI),  / 

TTiider  an  apj)ro))riato  title,  as  Afdsc.,  }lrn\  J'.state, 
(Jasli,  eU'.y  AvheJi  it  comes  into  oui  jiossession. 

"Allowances  ark  Dkritkd, 
Under  appropriate  titles,  as   Interest,  Exchange, 


"  Persons  are  (Credited, 
•Wlieu  we  get  into  tlieir  debt,  and 
'  Wlien  tlu'V  get  out  of  our  de])t. 

*  1*R01'KRTY    IS    (/RKDITKl), 

Under  its  approj>riate  titU',  wlien   it  go(V8  ont  of 
our  ]>osses8ion. 

"Allowances  ark  f'RKDiTEi), 
Under  tlieir  a])}»ro])riate  titles,  wlien  made  to  us. 


Commission,  etc.,  wlien  made  by  us. 

The    hree  kinds  of  accounts  mentioned  above  are  divided  into  "two  general  classes,  one  class 
showing  Gains  and  Losses,  and  the  other  Resources  and  Liabilities. 


*•  Losses. 

An  account  exhibits  a  Loss,  if  the  thing  it  rep- 
resents has  cost  us  more  than  it  has  produced. 

"  Resources. 
An  account  exhibits  a  Resource,  if  it  represents 


"  Gains. 
An  account  exhibits  a  Gain,  if  the  thing  it  rep- 
resents has  produced  us  more  than  it  has  cost. 

"  Liabilities. 
An  account  exhibits  a  Liability,  if  it  represents 
a  debt  owing  by  us. 


property  on  hand,  or  a  debt  owing  to  us. 

**  The  excess  in  an  account  showing  either  a  Resource  or  a  Loss  will  be  on  the  debit  side,  and  "  the 
excess  in  an  account  showing  either  a  Liability  or  a  Gain  will  be  on  the  credit  side. 

SPECIAL  RULES  FOR  JOURNALIZING. 

The  following  additional  rules,  definitions  and  explanations  are  given  to  supplement  and  empha- 
size the  foregoing  general  rules,  as  a  further  aid  to  the  student  in  the  work  of  journalizing. 


THE  PROPRIETOR. 


Dr. 


Cr. 


"  The  Proprietor  is  credited  for  the  amount  of 
his  investment  on  ccmimencing  business,  for  all 
subsequent  investments,  and  for  his  net  gain. 


"•The  Proprietor  is  debited  for  his  liabilities 
assumed  by  the  business,  for  all  amounts  drawn 
by  him  from  the  business  for  his  private  use,  and 
for  his  net  loss. 

"The  title  "Stock"  is  sometimes  used  in  place  of  the  proprietor's  name.     The  explanation  for  a 
co-partnership  will  be  given  hereafter. 

CASH. 


Dr. 

"  Cash  is  debited  when  it  is  received. 


Cr. 


M 


Cash  is  credited  when  it  is  paid  out. 


"Under  the  title  "Cash"  we  include  Currency,  Bank  Checks,  Postal  Orders,  Sight  Drafts,  and 
usually  all  kinds  of  paper  payable  on  demand.  "  The  Dr.  side  of  cash  account  will  always  be  greater, 
when  there  is  any  difference,  « because  we  cannot  pay  out  more  than  we  have  received,  ** and  the 
difference  will  show  the  cash  on  hand,  «  which  difference  is  a  Resource.  *«  When  all  the  cash  has  been 
paid  out,  the  account  will  balance.  » 

MERCHANDISE 
Dr.  Cr. 


"Mdse.  is  debited  when  it  is  bought,  for  its 
cost. 


"  Mdse.  is  credited  when  it  is  sold,  for  its  pro- 
ceeds. 


*»  Under  the  title  "  Mdse."  we  generally  include  all  goods  the  proprietor  is  dealing  in  as  a  business. 
« Sometimes,  however,  for  the  purpose  of  exhibiting  results  in  detail,  separate  accounts  are  opened, 
as  "Flour,"  "Pork,"  "Beef,"  etc.,  instead  of  including  all  under  the  general  heading  "Mdse. 
"  Since  the  Dr.  side  of  Mdse.  account  shows  the  cost  of  the  goods,  and  the  Cr.  side  the  proceeds,  the 


TUKOIJETIOAL    AND    PllACTTCAL    ]iO(»K-KEEPIX«.  • 

difference  will  show  the  gain  or  loss,  providing  the  goods  have  all  been  sold.  "  If  there  is  an  Inventory 
(goods  unsold),  its  value  must  first  be  added  to  the  proceeds  from  sales,  and  the  difference  ^^^n  tlu-n 
show  the  gain  or  loss.  "The  above  rule  and  explanations  will  also  apply  to  <»ther  i)roiK'rty,  as  Real 
Estate  (houses  and  hinds).  Bank  Stock,  Railroad  Stock,  etc.,  excepting  that  an  account  si.oul.l  Uv 
opened  with  each,  under  its  apju'opriato  title. 


EXPENSE. 


Dr. 


**  Expense  is  debited  with  any  outlay  for  carry- 
ing on  the  business. 


Cr. 


**  Expense  is  credited  when  anything  of  value 
is  disposed  of,  which  was  previously  debited  to 
Expense. 


« Under  the  title  "Expense"  we  generally  include  such  items  as  Rent,  Salaries,  Office  Books, 
Office  Furniture,  Fuel,  Light,  etc.     "If,  as  in  the  case  of  Mdse.,  it  is  desired  to  show  results  in  detail 
separate  accounts  may  be   opened  with  "Rent,"   "Salaries,"   "Office   Furniture,"  etc.,  instead  of 
including  all  these  items  under  the  general  heading  "Expense."    "Expense  account  usually  shows 

a  loss. 

BILLS  RECEIVABLE. 
Dr.  C-r. 


"Bills   Receivable   is   debited   for  the   written 
promises  to  pay,  of  other  parties,  when  received. 


«°  Bills  Receivable  is  credited  for  the  written 
promises  to  pay,  of  other  parties,  when  paid  or 
otherwise  disposed  of. 


••Under  the  title  "Bills  Receivable"  we  include,  generally.  Notes  and  Time  Drafts.  •'The  Dr. 
side  of  the  account  will  always  be  larger,  when  there  is  any  difference, «»  because  we  cannot- dispose  of 
a  greater  amount  than  we  have  received.  •*  The  difference  in  the  account  will  show  the  Bills  Receiv- 
able on  hand,  •*  which  difference  is  a  Resource.  ••  The  account  will  balance  when  the  Bills  Receivable 
have  all  been  disposed  of,  because  such  bills  are  always  debited  and  credited  at  their  face  value. 


BILLS  PAYABLE. 


Dr. 


•^  Bills  Payable  is  debited  for  our  written  prom- 
ises to  pay,  when  redeemed  (that  is  paid). 


Cr. 


•«  Bills  Payable  is  credited  for  our  written  prom- 
ises to  pay,  when  issued  (that  is  given). 


»  Under  the  title  "  Bills  Payable  "  we  include,  generally,  Notes  and  Accepted  Time  Drafts.  ™  The 
Cr.  side  of  the  account  will  always  be  larger,  when  there  is  any  difference,  "because  we  cannot  redeem 
a  greater  amount  than  we  have  issued.  "  The  difference  in  the  account  will  show  the  Bills  Payable 
outstanding,  "  which  difference  is  a  Liability.  "The  account  will  balance  when  all  the  Bills  Payable 
have  been  redeemed,  because  such  bills  are  always  debited  and  credited  at  their  face  value. 


INTEREST  AND  DISCOUNT. 


Dr. 


"Interest  and  Discount  are  debited  when  allowed 
to  others. 


Cr. 


"  Interest  and  Discount  are  credited  when  al- 
lowed to  us. 


"  Interest  is  the  compensation  allowed  for  the  use  of  money. 

™  Discount  is  the  allowance  made  for  the  payment  of  a  debt  before  it  is  due. 

^»  When  the  Dr.  side  of  Interest  and  Discount  account  is  the  greater,  the  difference  shows  a  loss; 
when  the  Cr.  side  is  greater,  the  difference  shows  a  gain.  ^  The  above  rule  will  apply  also  to  such 
accounts  as  Exchange,  Premium,  Collection,  Storage,  Commission,  etc. 

Additional  rules  and  explanations  will  be  given  when  required,  in  connection  with  the  work  to  be 
performed. 

EXAMPLES  IN  JOURNALIZING. 

Note.— The  following  twenty-nine  Examples,  representing  a  series  of  business  transactions,  are  desi<jned  to  illus- 
trate the  application  of  the  principles  embodied  in  the  foregoing  General  and  Special  Rules,  and  to  serve  lis  references 
to  aid  the  student  in  the  work  of  journalizing.  These  examples  are  not  to  be  written  up  by  the  student,  but  should  be 
carefully  studied  as  follows:  He  should  first  read  the  Day  Book  Record  for  the  transaction,  then  observe  how  it  is 
Journalized,  and  also  study  the  explanations  which  follow,  consulting  the  rules  to  which  references  are  made.  After 
reading  all  of  the  examples,  the  student  may  commence  the  work  upon  his  books,  as  instructed  in  note  on  page  12. 


!► 


i 
I 


I 


8 


THEORETK'AL    AND    PRACIIOAL   BOOKKEEPING. 


EXAMPLE    No.  1. 


DAY    BOOK    RECORD. 


ITBMS.         TOTAL. 


JOURNAL   ENTRY    FOR   SAME. 

DR. 


CR. 


J.  T.  Sniitli  commenced 
business  this  day,  and 
invested  Cash, 


1 

j 

5000 

Casli,  Dr. 

To  J.  T.  Smitlj,  Cr. 


5000 


5000 


Why  is  Cash  Dr.  in  above  journal  entry?     Because  Cash  is  received  (see  30,  page  6). 
Why  is  J.  T.  Smith  Cr.  ?     Because  the  proprietor  should  have  credit  for  his  investment  (see  37, 
page  6). 

EXAMPLE    No.  2. 

DAY   BOOK    RECORD.  JOURNAL   ENTRY    FOR   SAME. 


J.  T.  Smith  owes  C.  B. 
Hall, on  account,  which 
is  to  be  paid  from  the 
business, 


500 


J.  T.  Smith,  Dr. 

To  C.  B.  Hall,  Cr. 


500 


500 


Why  is  Smith  Dr.?    Because  the  proprietor  is  Dr.  for  liabilities  assumed  by  the  business  (see  36, 
page  6). 

Why  is  Hall  Cr.  ?     Because  the  proprietor  is  in  his  debt  (see  24,  page  6). 


EXAMPLE    No.  3. 


DAY    BOOK    RECORD. 


JOURNAL    ENTRY    FOR   SAME. 


Bought  of  J.  E.  Morse, 

for  Cash, 
200  bbls.  Flour,  at  6.00, 


1200 

! 

Mdse..  Dr. 


To  Cash,  Cr. 


1200 


1200 


Why  is  Mdse.  Dr.  ?     Because  it  is  bought  (see  47,  page  6).     Why  is  Cash  Cr.  ?     Because  it  is  paid 
out  (see  40,  page  6). 

EXAMPLE    No.  4. 

DAY    BOOK    RECORD.  JOURNAL   ENTRY    FOR   SAME. 


Sold  Geo.  Andrews,  for 

Cash, 
50  bbls.  Flour,     at  6.75, 


337 


50 


Cash,  Dr. 


To  Mdse.,  Cr. 


337 


50 


337 


50 


Why  is  Cash  Dr.  ?     Because  it  is  received  (see  39,  page  6).     Why  is  Mdse.  Cr.  ?     Because  it  i^ 
sold  (see  48,  page  6). 

EXAMPLE    No.  5. 

DAY    BOOK    RECORD.  JOURNAL   ENTRY   FOR   SAME. 


Bought  of  E.  N.  French, 

on  account, 
100  bbls.  Beef,   at  14.50, 


1450 


Mdse.,  Dr. 

To  E.  N.  French,  Cr. 


1450 


1450 


Mdse.  is  Dr.  because  it  is  bought  (see  47,  page  6).  Why  is  E.  N.  French  Cr.  ?  Because  we  have 
bought  property  of  him  on  account  ('*on  account"  means  that  we  do  not  pay  him  for  it  at  time  of 
purchase),  and  we  therefore  get  into  his  debt  (see  24,  page  6). 


EXAMPLE    No.  6. 


DAY    BOOK    RECORD. 


JOURNAL    ENTRY    FOR   SAME. 


Sold   Reed   &   Mills,  on 

account, 
50  bl)ls.  Flour,     at  7.00, 


350 


50 


Beef, 


16.00,  i  800 


1150 


Reed  &  Mills,  Dr. 

To  Mdse.,  Cr. 


1150 


1150 


Why  are  Reed  &  Mills  Dr.  ?  Because  they  have  bought  property  of  us  on  account  (that  is,  they 
do  not  pay  us  for  it  at  the  time  of  purchase),  and  therefore  get  into  our  debt  (see  23,  page  6).  Why 
is  Mdse.  Cr.  ?  Because  it  is  sold  (see  48,  page  6).  Since  Flour  and  Beef  were  both  journalized  as 
Mdse.  when  bought,  we  now  credit  Mdse.  in  one  amount  for  the  sale. 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 

EXAMPLE    No.  7. 


9 


DAY    BOOK    RECORD. 


ITEMS.  TOTAL,. 


JOURNAL   ENTRY    FOR   SAME. 

I>R. 


OR. 


Paid   rent    of    store    in 
Cash, 


50 


Expense,  Dr. 

To  Cash,  Cr. 


50 


50 


Why  is  Expense  Dr.?     Because  rent  is  an  item  of  cost  in  carrying  on  the  business  (see  54,  page  7). 
Cash  is  Cr.  because  it  is  paid  out  (40,  page  6). 


EXAMPLE    No.  8. 


DAY   BOOK    RECORD. 


JOURNAL   ENTRY    FOR   SAME. 


Paid  E.  N.  French,  cash 
to  apply  on  account, 


450 


E.  N.  French,  Dr. 

To  Cash,  Cr. 


450 


450 


Why  is  E.  N.  French  Dr.  ?  Because  we  get  out  of  his  debt,  to  the  extent  of  1450  (see  23,  page  6). 
Since  we  gave  him  Cr.  Jan.  5  (see  Ex.  No.  5)  for  11450,  we  must  now  make  him  Dr.  1^450,  the  amount 
we  pay  him,  in  order  that  his  account  may  show  the  exact  amount  we  still  owe  him.  Cash  is  Cr. 
because  it  is  paid  out  (40,  page  6). 

EXAMPLE    No.  9. 

DAY    BOOK    RECORD.  JOURNAL   ENTRY   FOR   SAME. 


Received  cash  of  Reed 
&  Mills,  to  apply  on 
account. 


200 


Cash,  Dr. 

To  Reed  &  Mills,  Cr. 


200' 


200 


Cash  is  Dr.  because  it  is  received  (39,  page  6).  Reed  &  Mills  are  Cr.  because  they  get  out  of  our 
debt  to  the  extent  of  $200  (24,  page  6).  Since  we  made  them  Dr.  (see  Ex.  No.  6)  for  %\  150,  we  must 
now  give  them  Cr.  $200,  in  order  that  their  account  may  show  the  exact  amount  they  still  owe  us. 


EXAMPLE    No.  10. 


DAY   BOOK    RECORD. 


JOURNAL   ENTRY   FOR   SAME. 


Bought  of  E.  D.  Harris, 
100  bbls.  Pork,at  12.00, 

Gave  my  note  at  10  days 
in  payment. 


1200 


Mdse.,  Dr. 

To  Bills  Pav.,  Cr. 


1200 


1200 


Mdse.  is  Dr.  because  it  is  bought  (47,  page  6).     Bills  Payable  is  Cr.  because  our  written  promise 
to  pay  has  been  issued  (see  68,  page  7). 


EXAMPLE    No.  11. 


DAY   BOOK    RECORD. 


JOURNAL   ENTRY   FOR   SAME. 


Received  of  Reed  i&  Mills, 
their  note  at  ten  days, 
to  apply  on  account. 


i 

600 

Bills  Rec'v,  Dr. 

To  Reed  &  Mills,  Cr. 


600 


600 


Bills  Receivable  is  Dr.  because  the  written  promise  of  another  party  has  been  received  (59,  page 
7).  Reed  &  Mills  are  Cr.  because  they  get  out  of  our  debt  to  the  extent  of  1600,  our  claim  for  that 
sum  now  being  in  the  form  of  Bills  Receivable  (24,  page  6). 


EXAMPLE    No.   12. 


DAY    BOOK    RECORD. 


JOURNAL   ENTRY    FOR   SAME. 


Gave  E.  N.  French  my 
note  at  ten  days,  with 
interest,  to  apply  on 
account. 


500 


E.  N.  French,  Dr. 

To  Bills  Pay.,  Cr. 


5001 


500 


E.  N.  French  is  Dr.  because  we  get  out  of  his  debt  to  the  extent  of  $500  (23,  page  6),  our  liability 
now  being  in  the  form  of  Bills  Payable  for  that  amount.  Bills  Payable  is  Cr.  because  our  written 
promise  to  pay  has  been  issued  (68,  page  7). 


i« 


f 


i 


.i 


' 


10 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


EXAMPLE    No.  13. 


DAY    BOOK    RECORD. 


Sold  Chas.  Iljinilin, 
50  l)bl8.  Flour,  at  7.00, 
50     "     Pork,      14.00, 

Rec'd  payment  by  his 
note  at  ten  days,  with 
interest. 


ITEMS. 

TOTAL. 

350 

700 

1050 

JOURNAL   ENTRY    FOR   SAME. 

PR. 


CR. 


Hills  Rec'v,  Dr. 

To  Mdse.,  Cr. 


1050 


1050 


Bills  Receivable   is  Dr.  because  the  written   ])roniise  of  another  party  is  received  (59,  page  7). 
Mdse.  is  Cr.  because  it  is  sold  (48,  page  6). 

EXAMPLE    No.   14. 

DAY   BOOK    RECORD.  .TOITRNAL  ENTRY   FOR   SAME. 


Sold  F.  E.  Clark, 

25  bbls.  Beef,  at  Kl.OO, 
Rec'd  in  payment,  Cash, 
Balance  on  account. 


400 

5  . 

150 
250 

CO 

Cash,  Dr. 

F.  E.  Clark,  Dr. 


To  Mdse.,  Cr. 


150 
250 


400 


Cash  is  Dr.  because  received  (39,  page  6).  F.  E.  Clark  is  Dr.  because  he  gets  into  our  debt  (23, 
page  6).  Mdse.  is  Cr.  because  sold  (48,  page  0).  The  above  form  is  equivalent  to  making  Clark  Dr. 
400  and  Mdse.  Cr.  400  in  one  entry,  and  then  making  a  second  entry,  Cash  Dr.  150,  Clark  Cr.  150. 
The  above  form  saves  one  entry. 

EXAMPLE    No.   15. 

DAY    BOOK    RECORD.  JOCRNAL    ENTRY    FOR   SAME. 


Bought  of  Milo  Sage, 

300bbls.  Flour,  at(J.50, 
Paid  him  Cash, 
Balance  on  account, 


950' 
lOOOl 


1950 


c  > 

c  o 


Mdse.,  Dr. 


To  Cash,  Cr. 
''   M.  Sage,  Cr. 


1950 


950 
1000 


Mdse.  is  Dr.  because  bought  (47,  page  G).  Cash  is  Cr.  because  paid  out  (40,  page  G).  Sage  is  Cr. 
because  we  get  into  his  debt  (24,  page  G).  This  form  saves  one  entry,  as  explained  in  the  preceding 
example. 


EXAMPLE    No.   16. 


DAY    BOOK    RECORD. 


JOURNAL    ENTRY    FOR    S.A.ME. 


Bought    of    0.    F.   Wil- 
son, 
House  and  Lot,  for  cash. 


1500 


Real  Estate,  Dr. 

To  Cash,  Cr. 


1500 


1500 


Real  Estate  is  Dr.  because  bought  (see  53,  page  7).     Cash  is  Cr.  because  paid  out  (40,  page  6). 

EXAMPLE    No.    17. 


DAY    BOOK    RECORD. 


JOURNAL   ENTRY    FOR   SAME. 


Bought  of  W.  E.  Holt, 
200  bbls.  Beef,  at  13.00, 

Paid  him  Cash, 

My  note  at  15  days  for 
balance. 


2G00 

600 

2000 

t 
1 

Mdse.,  Dr. 


To  Cash,  Cr. 
''   Bills  Pav.,  Cr. 


•2600 


GOO 
2000 


Mdse.  is  Dr.  because  bought  (47,  page  6).    Cash  is  Cr.  because  paid  out  (40,  page  6).    Bills  Payable 
is  Cr.  because  we  issue  our  written  i)romi8e  to  pay  (08,  page  7). 


EXAMPLE    No.  18. 


DAY   BOOK    RECORD. 


JOURNAL   ENTRY    FOR   SAME. 


Bought  Safe  for  Office, 
and  paid  for  same  in 
Cash, 


200 


Expense,  Dr. 

To  Cash,  Cr. 


200 


200 


Ex})ense  is  Dr.  because  the  Safe  is  an  item  of  cost  in  carrying  on  the  business  (54,  page  7).     Cash 

is  Cr.  because  paid  out  (40,  page  6). 

Note. — In  cases  like  the  above  where  part  jKiyment  is  made  at  the  lime  of  purchase,  the  transaction  may,  if  <le.sirp<l, 
bo  journalized  as  follows:  debit  or  credit  the  person,  as  tlie  case  may  be.  with  the  /'///  amount  In  one  entry,  and  in 
auotbcr  entry  credit  or  debit  him  wifli  the  payment. 


* 


THEORETICAL   AND   PRACTICAL   BOOK  KEEPING. 


11 


EXAMPLE    No.  19. 


DAY    BOOK   RECORD. 


Sold  A.  D.  Larkin, 

50  bbls.  Flour,  at  7.50, 

25    ''     Beef,       IG.OO, 

Rec'd  in  payment.  Cash, 

His  note  at  two  months 

for  balance. 


ITEMS. 

TOTAIi. 

375 

400 

775 

275 

500 

JOURNAL   ENTRY   FOR   SAME. 

DR. 


CB. 


Cash,  Dr. 
Bills  Rec'v,  Dr. 


To  Mdse.,  Cr. 


275 
500 


775 


Cash  is  Dr.  because  received  (39,  page  6).     Bills  Receivable  is  Dr.  because  received  (59,  page  7). 
Mdse.  is  Cr.  because  sold  (48,  page  6). 


EXAMPLE    No.  20. 


DAY   BOOK    RECORD. 


JOURNAL   ENTRY    FOR   SAME. 


J.  T.  Smith  drew  cash 
from  the  business  for 
private  use. 


350 


J.  T.  Smith,  Dr. 

To  Cash,  Cr. 


350 


350 


Smith  is  Dr.  because  he  is  the  proprietor  and  draws  this  money  for  private  use  (3G,  page  G).    Cash 
is  Cr.  because  paid  out  (40,  page  G). 


EXAMPLE    No.  21 


DAY   BOOK    RECORD. 


.JOURNAL   ENTRY    FOR   SAME. 


Rec'd  of  F.  E.  Clark,  to 

balance  account, 
Cash, 
His  note  at  45  days  for 


100 
150 

1 

250 

1 

Cash,  Dr. 
Bills  Rec'v,  Dr. 

To  F.  E.  Clark,  Cr. 


100 
150 


250 


Cash  is  Dr.  because  received  (39,  page  G).     Bills  Receivable  is  Dr.  because  received  (59,  page  7). 
Clark  is  Cr.  because  he  gets  out  af  our  debt  (24,  page  G). 


EXAMPLE    No.  22. 


DAY    BOOK    RECORD. 


JOURNAL   ENTRY    FOR   SAME. 


Paid  M.  Sage,  to  apply 
on  account,  Cash, 

My  note  at  30  days,  with 
interest. 


250 
500 


750 


M.  Sage,  Dr. 


To  Cash,  Cr. 
"   Bills  Pay.,  Cr. 


750 


250l 
5(K) 


Sage  is  Dr.  because  we  get  out  of  his  debt,  in  part  (23,  page  6).     Cash  is  Cr.  because  paid  out  (40, 
page  6).     Bills  Payable  is  Cr.  because  we  issue  our  written  promise  to  pay  (G8,  page  7). 


EXAMPLE    No.  23. 


DAY   BOOK    RECORD. 


JOURNAL   ENTRY    FOR   SAME. 


Paid  my  note  of  the  10th 
inst. ,  in  favor  of  E.  D. 
Harris,  in  Cash, 


1200 


Bills  Pay.,  Dr. 

To  Cash,  Cr. 


1200 


1200 


Bills  Payable  is  Dr.  because  our  written  promise  to  pay  is  redeemed  (67,  page  7).     Cash  is  Cr. 
because  paid  out  (40,  page  6). 

EXAMPLE    No.  24. 

DAY    BOOK    RECORD. 


JOURNAL   ENTRY    FOR   SAME. 


Rec'd  Cash  of  Reed  & 
Mills,  for  their  note  of 
11th  inst.,  due  to-day. 


GOO 


Cash,  Dr. 

To  Bills  Rec'v,  Cr. 


6(X) 


600 


Cash  is  Dr.  because  received  (39,  page  G).     Bids  Receivable  is  Cr.  because  the  written  promise  to 
pay  of  another  is  disposed  of  (GO,  page  7). 


t^ 


li 


THKORETICAL    ANI>     PKAl^'ICAL    HOOK  KKEIMNO. 


EXAMPLE    No.   25. 


PAY    HOOK    UKrORl). 


Paid  iuyn(>tiM>f  1  x'tli  inst. 
in  favor  of  l''ri>iu'h.  duo 
to-day.  witli  interest, 
in  Catsh, 

Face  of  note. 

Interest  to  date.  13  davs. 


rrnMR. 

•nVTAI,. 

501 

O.s 

500 

1 

i 

08 

.lOl'KNAL   ENTKY    FOR  SAME. 

DR. 


CR. 


Hills  IXv..  I)r, 
Interest,  |)r. 


To  Casli,  Cr. 


500 
1 


08 


601 


08 


Bills  Payable  is  Pr.  beeause  our  written  promise  is  redeemed  (07.  pa^o  7).     Interest  is  Dr.  because 
it  is  allowed  to  others  (T5.  page  T).     Cash  is  Cr.  beeause  paid  out  (40,  page  (i\ 


EXAMPLE    No.   26. 


DAY    HOOK    KKrOKD. 


Kee\l  eash  of  ('has.  Ham- 
lin, for  his  notei>f  I'Mh 
inst..  due  to-day,  with 
interest, 

Faee  of  note. 

Interest  to  date,  13  tlays, 


105-.> 

•28 

1050 

.        ^' 

28 

.TOURNAI.   ENTRY    FOR   SAME. 

Casli,  Dr.  105*2 

To  Bills  Uec'v,  Cr. 
"   Interest,  Cr. 


1050 


28 


Cash  is  Dr.  beeause  received  (39.  page  (i).     Bill  Receivable  is  Cr.  because  disposed  ot  (GO,  page  7). 
Interest  is  Cr.  beeause  it  is  allowed  to  us  (7<>,  page  7). 


EXAMPLE    No.  27. 


DAY    BOOK    RECORD. 


JOURNAL  ENTRY   FOR  SAME. 


Prepaid  my  note  of  ITth 
inst.,  in  favor  of  W.  E. 
Holt, 
Discount  off,  8  days. 
Paid  balance  in  Cash, 


2  67 
1907  33 


2000 


Bills  Pay.,  Dr. 


To  Discount,  Cr. 
'*   Cash,  Cr. 


2000 


2 

1997 


67 
33 


Bills  Payable  is  Dr.  because  our  written  promise  has  been  redeemed  (r,7,  page  7).     Discount  is  Cr. 
beeause  it  is  allowed  to  us  (TO,  page  7).     Cash  is  Cr.  because  paid  out  (40,  page  6). 


EXAMPLE    No.  28. 


DAY    BOOK    RECORD. 


.TOURNAL   ENTRY    FOR   SAME. 


A.  D.  Larkin  prepaid  his 
note  of  19th  inst.. 

Discount  off,  1  mo.  22 
days. 

Ree'd  balance  in  Cash. 


4 
495 


33 
67 


500 


Discount,  Dr, 
Cash.  Dr. 


To  Bills  Rec'v,  Cr. 


4 

33 

495 

67 

500 

Discount  is  Dr.  because  it  is  allowed  to  others  (75,  page  7).  Cash  is  Dr.  because  received  (39, 
page  6).  Bills  Receivable  is  Cr.  because  the  written  promise  to  pay  of  another  party  is  disposed  of 
(60,  page  7). 


EXAMPLE    No.  29. 


DAY   BOOK    RECORD. 


JOURNAL   ENTRY    FOR   SAME. 


Paid  Clerks'  Salaries  to'! 
date,  in  Cash,  jj 


100 


Expense,  Dr.  II  100 

To  Cash,  Cr.  ' 


100 


Expense  is  Dr.  because  Salaries  is  an  item  of  cost  in  carrying  on  the  business  (54,  i)age  7).     Cash 
is  Cr.  because  paid  out  (40,  page  6). 

Note  to  Student.— Having  carefully  read  the  preceding  pages,  you  may  now  begin  the  work  upon  your  books. 
First  copy  into  your  Day  Book  the  business  transactions  for  January,  as  given  on  the  following  pages.  As  you  are 
supposed  to  be  the  proprietor  of  the  business,  you  will  write  your  name  in  the  blank  lines  in  the  first  two  transactions 
on  the  next  page. 

In  copying  you  may  omit  from  your  Day  Book  the  figures  in  the  column  at  the  left  of  the  transactions,  as  they  are 
simply  reference  figures,  to  assist  in  journalizing.  The  explanations  for  their  use  will  be  given  hereafter.  You  should 
make  your  pages  as  nearly  as  possible  like  the  following,  in  substance,  penmanship  and  arrangement.  Read  foot  notes 
carefully,  as  all  are  important  to  an  understanding  of  the  work. 


TIIKOHKTKAL    AND    PKACHirAL    BOOKKEEPING. 


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16 


THEORETICAL    AND    PRACTICAL    BOOKKEEPING. 


DIRECTIONS    FOR   JOURNALIZING. 


Having  com})letocl  the  work  of  copying  the  foregoing  transactions  into  your  Day  Book,  you  may 
now  journalize  them.  As  explained  in  0  and  10,  on  page  5,  journalizing  is  deciding  upon  the  i.roper 
debits  and  credits  of  the  business  transactions  recorded  in  the  Day  Book,  and  arranging  them  in  the 
Jouriud  in  a  form  convenient  for  transferring  (posting)  to  the  Ledger.  In  journalizing,  therefore,  you 
will  need  your  Day  Book  and  Journal  before  you. 

The  Examples  commencing  on  page  8  are  designed  to  assist  you  in  the  work  of  journalizing. 
To  illustrate  :  Read  the  first  transaction  in  your  Day  liook  ;  then  turn  to  page  8  and  comj>are 
it  with  the  Day  Book  Record  of  Example  N<>.  1.  As  you  will  see,  they  read  sul)stantially  alike, 
and  precisely  the  same  principles  are  involved  in  each.     If,  therefore,  Exami)lc  No.  1  be  journalized 

Cash,  Dr.  5000  ^^^^^  journal  entry.for  Example  No.  1,  page  8),  it  follows  that  the 

To  J.  T.  Smith,  Cr.  5000  ^       •>  -' 

.       •  T^      «     1     1      11  I      •  r     1  ^'^sh,  Dr  4000 

first  transaction  in  your  Day  Book  should  be  journaiizeil  r^^  Student,  Cr.  4000 

Turn  to  your  Journal,  therefore,  and  make  the  journal  entry  as  shown  in  the  engraved  form  below, 
^ou  will  observe  that  the  del)its  are  entered  on  the  left  side  and  the  credits  on  the  right  side  of  the 
dividing  line.  The  abbreviations  Dr.  and  Cr.  are  omitted'  from  the  Journal.  The  sign  *'  To  "  indicates 
that  the  item  before  which  it  is  placed  is  a  credit.  After  you  have  made  the  entry  in  your  Journal,  turn 
at  once  to  your  Day  Book,  and,  in  the  column  at  the  left,  check  the  transaction  thus  V,  to  prevent 

omissions. 

Next  proceed  to  journalize  the  second  transaction  in  your  Day  Book.  By  reference  to  page  13  of 
the  text  book,  you  will  see  that  the  small  reference  figures  at  the  left  of  this  transaction  indicate  that 
you  are  to  consult  Example  No.  2,  on  page  8,  for  assistance  in  making  the  journal  entry.  Again,  the 
reference  figures  for  transaction  of  January  2,  page  13,  refer  you  to  Example  No.  3,  page  8;  for 
transaction  of  January  4,  to  Example  No.  5,  and  so  on. 

By  referring  in  this  manner  to  an  exami)le  containing  the  same  conditions  as  the  transaction  you 
are  journalizing^  you  can  readily  determine  the  proi)er  debits  and  credits  for  all  of  the  transactions  in 
January.  In  consulting  these  examples  for  assistance  in  making  the  journal  entries,  you  should  at  the 
same  t'ime  study  the  rules  and  exidanaticms  given  under  them,  that  you  may,  as  soon  as  possible, 
become  familiar  with  the  principles  of  debit  and  credit. 

After  journalizing  all  of  the  transactions  for  January,  present  your  Journal  to  the  teacher  for 

approval. 


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THEORETICAL    AND    PRACTICAL    BOOK-KEEPING.  1< 

DIRECTIONS  FOR  POSTING. 

After  you  have  journalized  all  of  the  transactions  for  January,  and  your  Journal  has  been 
approved  by  the  teacher,  your  next  work  will  be  to  post.  Posting,  as  explained  in  14  to  20,  on  page  5, 
is  transferring  the  del)its  and  credits  from  the  Journal  to  the  Ledger,  placing  those  of  the  same  name 
under  one  heading,  for  the  purpose  of  exhibiting  the  final  results  of  the  business.  The  simple  process 
of  posting  is  not  difficult;  it  is  purely  mechanical,  but  it  requires  constant  watchfulness  and  care  to 
perform  the  work  without  making  errors. 

A  few  Ledger  accounts  are  shown  on  page  19,  to  give  you  an  idea  of  the  form  for  opening 
accounts  in  your  Ledger;  and  you  will  find  explicit  instructions  for  posting  given  below%  under  ''Guide 
for  posting  the  Journal  entries  for  January." 

You  are  to  follow  those  instructions  to  the  very  letter,  performing  the  work  step  by  step  as 
directed.  To  illustrate:  In  the  instructions  for  posting  the  first  journal  entry  (Jan.  1),  you  are  told 
to  *' write  your  own  name  at  the  top  of  page  1  in  your  Ledger."  Before  reading  the  instructions 
further,  you  should  turn  to  your  Ledger  and  })erform  the  work  exactly  as  directed;  then  turn  again 
to  the  instructions  and  see  what  the  next  step  is,  and  take  that,  and  so  on  until  you  have  posted  the 
entire  entry. 

Then  take  the  instructions  for  the  second  entry  in  your  Journal,  and  proceed  in  the  same  manner 
as  with  the  first  entry,  performing  the  work  precisely  as  indicated. 

After  you  have  posted  a  few  of  the  journal  entries  by  the  aid  of  the  instructions,  lay  aside  your 
text  book  and  proceed  without  it  if  possible. 

You  may  now  place  your  Journal  and  Ledger  before  you,  and  commence  posting  in  accordance 
with  the  following 

GUIDE  FOR  POSTING  THE  JOURNAL  ENTRIES  FOR  JANUARY. 

JANUARY   1.      (See  this  Entry  in  your  Journal.) 

First,  write  your  name  at  the  top  of  page  1  in  your  Ledger,  on  the  upper  line,  in  a  bold,  plain 
hand.  (See  form  of  Ledger  on  page  19.)  Next,  on  the  right  hand  side  of  the  heavy  line  in  the 
center— Cr.  side— enter,  in  the  date  column,  the  date,  *'Jan.  1."  (The  explanation  column  will  be 
left  blank  for  the  present.)  Next,  in  the  journal  page  column,  enter  the  page  of  your  Journal, 
*'l."  Next,  in  the  amount  column,  enter  the  amount,  "4000."  Next  turn  to  your  Journal,  and 
place  a  check  mark,  thus  ''\/,"  opposite  the  student's  name,  to  indicate  that  the  item  has  been 
posted.  (See  Journal  form  on  page  IG.)  Before  reading  any  further,  perform  the  above  work 
precisely  as  instructed.  Next  write  '"Cash,"  in  a  bold,  plain  hand,  at  the  top  of  page  2  in  your 
Ledger.  Next,  on  the  left  hatid  side  of  the  heavy  line  in  the  center — that  is,  on  the  Dr.  side — 
enter  in  the  date  column,  the  date,  ''Jan.  1."  Next,  in  the  Journal  page  column,  enter  the  page  of 
your  Journal,  "1."  Next,  in  the  amount  column,  enter  the  amount,  ''4000."  Next  turn  to  your 
Journal,  and  place  a  check  mark,  thus  "v//"  opposite  Cash,  to  indicate  that  this  item  has  been  posted. 

• 

JANUARY   1,    SECOND   ENTRY.     (See  this  Entry  in  your  Journal.) 

Turn  to  Student's  account,  on  page  1  in  your  Ledger,  and  on  the  left  hand  side — that  is  the  Dr. 
side  of  his  account — enter,  in  the  date  column,  the  date,  "Jan.  1."  Next,  in  the  journal  page  column, 
enter  the  page  of  your  Journal,  "1."  Next,  in  the  amount  column,  enter  the  amount,  "300."  Next 
turn  to  your  Journal  and  check  the  item  thus  "v/."  Next  write  "J.  S.  Baker's"  name  at  the  top 
of  page  3  in  your  Ledger.  Next,  on  the  right  hand  side — that  is  the  Cr.  side  of  his  account — enter,  in 
the  date  column,  the  date,  "Jan.  1."  Next  enter  in  the  journal  page  column  the  page  of  your  Jour- 
nal, "1."  Next,  in  the  amount  column,  enter  the  amount,  "300."  Next  turn  to  your  Journal  and 
check  the  item  thus  "v/«" 

JANUARY   2.      (See  this  Entry  in  your  JournalJ 

Open  an  account  with  "Merchandise"  at  the  top  of  page  ^  in  your  Ledger;  then,  on  the  left 
hand  side — that  is  the  Dr.  side — enter,  in  the  date  column,  the  date,  "Jan.  2";  next  enter  the  page 
of  your  Journal,  "1";  next  enter  the  amount,  "G50";  next  turn  to  your  Journal  and  check  Mdse. 
thus  "  v/."  Next  go  to  Cash  account,  on  page  2  in  your  Ledger,  and  enter,  on  the  Cr.  side — that  is 
the  right  hand  side — the  date,  "Jan.  2  ";  next  enter  the  journal  page,  "  1";  next  enter  the  amo*int, 
"  650  ";  next  turn  to  vour  Journal  and  check  thus  "  v^." 


lb 


THEOREriCAL    AND    PRACTICAL    BOOK-KEEPING. 


JANUARY  3.     (See  this  Entry  in  your  Journal.) 

Turn  to  Merchandise  account,  on  page  4  in  your  Ledger,  and  enter,  on  the  Dr.  side — leff  hand 
side— in  the  date  column,  tlie  (hite,  "3,"  the  ditto  nuirks— thus  " — being  j)hiced  under  Jan.  to  save 
repetition;  next  enter  tlie  journal  page,  "  1  ";  next  enter  tlie  amount,  "  750  ";  next  check  the  item  in 
the  Journal  thus,  ''\/."  Next  oi)en  an  account  with  II.  W.  Stevens,  at  the  top  of  page  5  in  your 
Ledger,  and  enter,  on  the  Cr.  side  oi  his  account,  the  date,  'Man.  3";  the  journal  page,  *'l";  the 
amount,  ''  750";  then  turn  to  the  Journal  and  check  as  before  instructed. 

JANUARY  4.      (See  the  Journal  Entry.) 

Turn  to  Cash  account,  on  page  2  in  your  Ledger,  and  enter,  on  the  Dr.  side— /<//  hand  side — of 
the  account,  the  date,  "4,"  ])lacing  ditto  marks  under  the  month;  next  enter  the  journal  page, 
"1";  next  enter  the  amount,  "187.50";  next  turn  to  your  Journal  and  check.  Next  turn  to  Mer- 
chandise j:ccount,  on  i)age  4,  and  enter,  on  the  Cr.  side,  the  date,  ''Jan.  4";  next  the  journal  page, 
'*  1  "j  next  the  amount,  "  187.50  ";  next  turn  to  your  Journal  and  check. 

JANUARYS.      (See  the  Journal  Entry.) 

Open  an  account  with  "Ford  &  Co."  in  the  middle  of  page  5  in  your  Ledger,  and  enter,  on  the 
Dr.  side  of  the  account,  the  date,  "Jan.  5";  next  enter  the  journal  page,  "1";  next  enter  the 
amount,  '■•6::i5.00";  next  turn  to  your  Journal  and  check.  Next  turn  to  Mdse.  account,  on  page  4. 
and  outer,  on  the  Cr.  side,  the  date,  "5";  next  the  journal  page,  "  I";  next  the  amount,  "625.00." 

JANUARY  6.     (See  the  Journal  Entry.) 

Open  an  Expense  account  at  the  top  of  page  6.  Enter,  on  the  Dr.  side,  the  date,  "Jan.  G  ";  next 
the  journal  page,  "1";  next  the  amount,  "25";  next  check  in  the  Journal.  Next  turn  to  Cash 
account,  on  page  2,  and  enter,  on  the  Cr.  side,  the  date,  "6";  the  journal  j)age,  "  1  "j  the  amount, 
"25";  then  check  in  the  journal. 

JANUARY  8.      (See  the  Journal  Entry.) 

Turn  to  H.  W.  Stevens'  account,  on  page  5,  and  enter,  on  Dr.  side,  the  date,  "Jan.  8";  journal 
page,  "1";  amount,  "250";  then  check  in  the  Journal.  Next  turn  to  Cash  account,  on  page  2,  and 
enter,  on  the  Cr.  side,  the  date,  the  journal  page,  the  amount;  then  check  in  the  Journal. 

JANUARY  9. 

On  Dr.  side  of  Cash  account  enter  the  date,  the  journal  page,  the  amount;  then  check  in  the 
Journal.     Next,  on  the  Cr.  side  of  Ford  &  Co.'s  account,  enter  the  date,  journal  i)age,  amount. 

JANUARY  10. 
Post  on  the  Dr.  side  of  Cash  account,  as  instructed  heretofore,  and  check  in  the  Journal;  then 
post  on  the  Cr.  side  of  Mdse.  account. 

JANUARY  11. 

Post  on  the  Dr.  side  of  Stevens  account,  and  on  the  Cr.  side  of  Cash  account,  remembering  to 
check  in  the  Journal  after  each  posting. 

JANUARY  12. 

Post  on  Dr.  side  of  Mdse.  account.  Next  open  an  account  with  James  T.  Hoag,  at  the  top  of 
page  7,  and  credit  him. 

Note.— You  will  observe  that,  in  every  journal  entry,  an  equal  amount  is  posted  to  both  sides  of  the  Ledger,  thus 
keeping  it  constantly  in  balance.  This  is  the  principle  upon  which  Double  Entry  book-keeping  is  based  and  from 
which  it  takes  its  name. 

You  should  now  be  able  to  proceed  with  the  posting  without  further  a.«*sistan(e.  In  case  you  should  be  unable 
to  do  so,  however,  for  additional  practice  apply  to  the  teacher  for  a  separate  nheet  of  ledger  paper,  and  post  the  same 
entries  again. 

In  opening  new  accounts  in  your  Ledger  hereafter,  leave  one  half  of  a  page  space  for  each,  until  otherwise 

\astructed. 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPINQ. 


19 


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20  THEOHETICAL    AND    PKACTIOAL    BOOKKEEPING. 

TRIAL    BALANCE. 

"  A  Trial  Balance  is  a  teit  to  ascertain  whether  the  debit  and  credit  sides  of  the  Ledger  are  equal. 
"The  Trial  Balance  does  not  prove  the  work  absolutely  correct,  «»as  errors  may  be  made  which  will 
not  affect  the  e(iuality  of  the  Ledger,  ^  such  as  posting  to  the  wrong  account,  errors  in  journalizing, 
erroneous  computations,  etc. 

» If  the  footings  of  the  Trial  Balance  are  equal,  however,  it  is  generally  regarded  as  evidence  that 
the  work  upon  the  Ledger  is  correct,  "although  the  careful  book-keeper,  in  addition  to  such  proof, 
will  usually  go  over  his  computations  and  posting  the  second  time. 

You  may  now  proceed  to  take  a  Trial  Balance  for  January. 

INSTRUCTIONS  FOR  TAKING  JANUARY  TRIAL  BALANCE. 
Commence  with  the  first  account  in  your  Ledger,  which  is  Student's,  and  foot  the  Dr.  side  of  the 
account,  "placing  the  footing  in  small  lead-pencil  figures,  *« close  up  to  the  line  on  which  the  last  item 

is  posted,  as  illustrated  below. 

Student. 


188 
Jan. 


18 


300 

75 

375 


188 
Jan. 


4000 


The  above  illustration  shows  how  the  Dr.  side  of  Student's  account  will  appear  in  the  Ledger 
after  it  has  been  footed  for  the  trial  balance.  **  Do  not  draw  lines  under  the  columns  to  be  added,  as 
the  peculiar  position  of  the  footing  serves  to  distinguish  it  from  the  other  items  in  the  account. 
"  Make  your  pencil  footings  i)lain  and  distinct,  but  as  small  as  possible.  When  there  is  but  one  item 
on  either  side  of  an  account,  no  pencil  figures  are  necessary;  for  example,  see  credit  side  of  Student's 
account  above.  Next  write  your  name  on  the  first  line  in  the  trial  balance  sheet,  »'  placing  the  Dr. 
footing  of  your  account  in  the  left  hand  column  and  the  Cr.  footing  in  the  right  hand  column,  as 
illustrated  in  the  trial  balance  given  below. 

You  will  then  turn  to  the  next  account  in  your  Ledger— Cash.  Add  both  sides  of  the  account,  aa 
before  instructed,  placing  the  footings  in  pencil  in  the  position  described  above,  and  then  transfer 
them,  with  the  title  of  the  account— Cash— to  the  next  line  in  the  trial  balance  sheet.  Continue  Jn 
this  manner,  footing  and  carrying  results  to  the  trial  balance,  until  the  footings  of  all  of  the  accounts 
in  the  Ledger  have  been  transferred.  »»  When  the  footings  of  both  sides  of  an  account  are  equal  they 
should  be  omitted  from  the  trial  balance,  as  in  the  case  of  the  account  with  James  T.  Hoag.  You 
may  rule  up  Hoag's  account  in  your  Ledger  at  once.  (See  lirst  ruling  of  his  account,  page  30.)  "If 
your  trial  balance  is  correct,  the  footings  of  the  sides  will  be  e<iual,  and  will  correspond  in  all  particulars 
with  the  one  givpu  below.     Ahvaijs  nse  red  ink  in  ruliiKi. 


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THEORETICAL    AND    PRACT1CA.L    BOOKKEEPING. 


ERRORS  IN  TRIAL  BALANCES. 


21 


»*  No  rule  or  set  of  rules  can  be  given  for  the  certain  detection  of  errors  in  trial  balances,  save, 
perhaps,  a  careful  review  of  the  entire  work.  If  only  one  error  has  been  made,  however,  the  following 
short  tests  will  frequently  disclose  it,  and  they  should  be  first  applied,  as  involving  much  less  labor 
than  going  over  the  entire  work. 

First.— »^  If  the  error  be  exactly  $1,  $10,  $100,  $1000,  etc.,  it  is  very  likely  in  the  additions,  either 
of  the  Ledger  accounts  or  the  columns  of  the  trial  balance. 

Second.— *«  An  error  may  have  been  made  in  carrying  the  footings  of  the  accounts  from  the  Ledger 
to  the  trial  balance,  or «'  an  account  may  have  been  omitted  entirely  from  the  trial  balance. 

Third.— »« If  an  amount  has  been  omitted  in  posting,  the  trial  balance  will  be  exactly  that  amount 
out  of  balance.  *«  Look  through  the  Journal  or  other  books  from  which  you  have  posted,  and  see  if 
you  can  find  an  item  of  the  same  amount  as  the  error,  which  has  been  omitted  in  posting. 

Fourth.— "*  If  un  amount  has  been  posted  to  the  wrong  side  of  the  Ledger,  the  trial  balance  will 
be  just  twice  that  amount  out  of  balance;  "»'  therefore  look  through  the  Journal  for  an  item  of  one-half 
the  amount  of  the  error. 

Fifth.— '"^  If  the  error  be  divisible  by  9,  it  is  quite  likely  to  have  been  caused  by  a  transposition  of 
figures;  as,  $43  posted  $24  would  make  an  error  of  $18,  which  is  divisible  by  9;  again,  $345  posted 
$453  would  make  an  error  of  $108,  which  is  divisible  by  9,  etc. 

Sixth.—'""'  Should  all  of  the  foregoing  tests  fail  to  disclose  the  error,  it  will  be  necessary  to  review 
the  work,  '»*trom  the  date  of  the  last  trial  balance,  in  the  following  manner:  '*  Examine  carefully 
each  journal  entry,  to  be  certain  that  the  debits  and  credits  are  equal,  and  '""then  see  that  these  debits 
and  credits  have  been  transferred  correctly  to  the  Ledger,  '°^  placing  a  check  mark  in  pencil,  thus  \/,  m 
the  Ledger  against  each  item  examined  and  found  to  be  correctly  posted.  **  If,  after  thus  checking 
tlie  work,  you  find  an  amount  not  checked,  you  may  conclude  that  the  item  has  been  posted  twice. 
»»» Merely  examining  the  posting  without  checking  will  not  answer  the  purpose;  every  item  must  be 
checked  to  locate  the  error. 


Note.— Questions  upon  a  few  of  the  leading  principles  involved  in  the  work  of  the  foregoing  set  are  given  below, 
and  you  should  be  prepared  to  answer  them  satisfactorily  if  called  upon  L»y  the  teacher  at  any  lime  to  do  6u.  Bcturc 
proceeding  further,  therefore,  study  carefully  the  answers  to  the  following 

QUESTIONS  FOR  REVIEW. 

Pages.— 'What  is  book-keeping?  'What  is  the  object  of  it?  *What  are  the  principal  books 
employed  in  Double  Entry  called?  « Describe  the  use  of  the  Day  Book.  » Tiie  Journal.  "The 
Ledger.     '°  What  is  Journalizing?     "*  What  is  Posting? 

Page  6.—^  When  are  Persons  debited?   "When  are  Persons  credited?   *^When  is  Property  debited? 

"When  is  Property  credited? 

Page  20.— '•  What  is' a  Trial  Balance?  «MVliy  does  it  not  prove  the  Ledger  absolutely  correct? 
"When  may  an  account  be  omitted  from  the  Trial  Balance? 

Note.— After  you  have  become  familiar  with  the  principles  covered  by  the  above  questions,  proceed  to  copy  into 
your  Day  Book  the  transactions  for  February,  as  given  on  tlie  following  pages.  In  all  computations,  if  the  fraction  is 
five  mills  or  over,  add  another  cent ;  if  less  than  five  mills,  drop  the  fraction.  Strive  to  make  the  work  upon  your 
books  «how  constant  progress  in  penmanship,  by  imitating  as  nearly  as  possible  the  forms  given  you  to  copy. 


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Note. — After  you  have  completed  copying  the  foregoing  transactions  into  j'our  Day  Book,  before  proceeding  to 
journalize,  draw  up  on  foolscap  paper  the  notes  mentioned  in  the  transactions  of  Feb.  2,  Feb.  5,  Feb.  9  and  Feb.  12. 
(See  form  of  note  on  page  21.) 

Interest  and  Discount  are  computed  in  this  work  at  6  per  cent.,  on  a  basis  of  365  days,  unless  otherwise  specified. 
When  a  note  is  given  in  months,  the  interest  or  discount  is  reckoned  in  months  and  days;  if  given  in  days,  the  actual 
number  of  days  are  taken. 

After  writing  the  notes  called  for  above,  proceed  to  journalize  the  transactions  for  February  as  you  did  those  of 
January,  referring  when  necessary  to  the  principles  and  examples  indicated  by  the  figures  at  the  left  of  the  transactions 
to  a.ssist  you  in  the  work.  As  before  stated,  you  sliould,  when  referring  to  the  rules  and  explanations,  study  them  care- 
fully, that  you  may,  as  soon  as  possible,  journalize  independently,  by  becoming  familiar  with  tlie  principles  of  debit 
and  credit  No  reference  figures  are  given  for  a  few  of  the  simpler  transactions  in  February,  it  being  presumed  that 
you  are  sufficiently  acquainted  with  the  principles  to  enable  you  to  journalize  them  without  such  assi.stance. 

When  you  have  completed  tlie  journalizing  for  February,  present  your  journal,  together  with  the  forms  of  notes 
called  for  above,  to  the  teacher  for  approval.     You  will  then  be  prepared  to  begin 

POSTING    FEBRUARY.      ' 

As  the  business  for  February  is  a  continuation  of  that  of  January,  it  will  be  posted  under  the 
same  ledger  headings,  new  accounts  being  opened,  of  course,  as  they  may  be  required.  Since  full 
instructions  for  posting  were  given  in  January,  you  will  i)robably  not  require  any  further  assistance, 
as  the  work  of  posting  is  always  substantially  the  same. 

Should  you  need  further  aid,  however,  in  the  work,  instructions  for  posting  a  few  of  the  tii-st 
journal  entries  in  February  are  given  below. 

GUIDE  FOR  POSTING  FEBRUARY. 

FEBRUARY    1        (See  this  Entry  in  your  Journal.) 
Turn  to  Wells,  Johnson  &  Co.'s  account,  on  page  8  in  your  Ledger,  and  enter,  on  the  Dr.  side  of 
their  account,  the  date,  "Feb.  1";  the  page  of  your  Journal,  ''3";  the  amount,  ''200";  then  turn 
to  your  Journal  and  check  this  item. 


26 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


Next  turn  to  Cash  account,  on  page  2,  and  enter,  on  the  Cr.  side,  the  date,  **Feb.  1  ";  the  journal 
page,  ''3";  the  amount.  •';iOO'';  then  turn  to  your  Journal  and  check. 

FEBRUARY  1.     (Second   Entry.) 

Turn  to  Expense  account,  on  page  6,  and  enter,  on  the  Dr.  side,  the  date,  journal  page  and 
amount;  then  check  in  the  Journal.  Next  turn  to  Cash  account,  on  page  2,  and  enter,  on  the  Cr. 
side,  the  date,  journal  page  and  amount;  then  check  in  the  Journal. 

FEBRUARY  2. 

Turn  to  Mdse.  account,  on  page  4,  and  post  on  the  Dr.  side.  Next  open  an  account  with  Bills 
Payable  at  the  top  of  page  9  in  your  Ledger.  (Bills  Payable  will  require  one  })age  space.)  Post,  on 
the  Cr.  side,  the  date,  journal  page  and  amount.  Kemember  to  check  every  item  in  the  Journal  as 
soon  as  posted. 

FEBRUARY  3. 
Post  on  the  Dr.  side  of  Cash  account,  and  on  the  Cr.  side  of  Mdse.  account. 

FEBRUARY  5. 

Open  an  account  with  Bills  Receivable  at  the  top  of  page  10  in  your  Ledger.  (Bills  Receivable 
will  refjuire  one  page  space.)  Post,  on  the  Dr.  side,  the  date,  journal  page  and  amount.  Turn  to 
Moore  &  Collins'  account,  and  credit  them  with  same  amount. 


Post  on  Dr.  side  of  Mdse.  account. 
11,  and  credit  him  with  same  amount. 


FEBRUARY  6. 
Next  open  an  account  with  David  Bailey  at  the  top  of  page 

FEBRUARY  7. 


Post,  on  the  Dr.  side  of  Cash  account,  "100";  on  the  Dr.  side  of  Jas.  T.  Iloag's  account,  ** 56.25'*; 
on  the  Cr.  side  of  Mdse.  account,  ''  150.25." 

Note. — Continue  in  this  manner  until  you  have  posted  the  entire  month  of  February.  In  opening  new  accounts 
hereafter  in  this  month,  give  each  account  one  half  a  page  space,  excepting  Interest  and  Discount,  which  will  require 
one  page  each. 

After  you  have  completed  the  posting  for  the  entire  month,  your  next  work  will  be  the 


TRIAL  BALANCE  FOR  FEBRUARY. 

Proceed  to  take  a  Trial  Balance  for  Fel)ruary,  in  accordance  with  the  instructions  for  the  January 
Trial  Balance,  given  on  i)agc  20.  In  footing  tlie  accounts  for  February,  add  in  tlie  January  footing 
also. 

Remember  that  the  footings  are  to  be  in  pencil.  Make  small,  plain  figures,  and  place  them  close 
up  to  tlie  line  on  wliich  the  last  item  in  the  account  is  i)osted,  as  instructed  in  88,  })age  20. 

Ford  &  Co.'s  account  balances;  it  is  therefore  to  be  ruled  up  (see  form  of  ruling  on  pages  38  and 
39),  and  omitted  from  your  Trial  l^alance. 

When  all  the  accounts  in  your  Ledger  have  been  footed  and  transferred  to  the  Trial  Balance,  it 
should  agree  in  all  respects  with  the  Trial  Balance  given  below. 

If,  however,  your  Trial  Balance  does  not  prove,  turn  to  page  21  and  consult  the  instructions  there 
given  for  finding  *' Errors  in  Trial  Balances." 


J 


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THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


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Note. — Questions  upon  some  of  the  principles  involved  in  the  preceding  set  are  given  below,  and  you  should  be 
prepared  to  answer  them  if  called  upon  to  do  so.  Before  proceeding  further,  therefore,  study  carefully  the  answers  to 
the  following. 

QUESTIONS  FOR  REVIEW. 

Page  7.—^  When  are  Bills  Payable  credited?  *^  When  debited?  ^  When  are  Bills  Receivable 
debited?  *"  When  credited?  ^^  When  are  Interest,  Discount,  etc.,  debited?  '*  When  credited?  "For 
wliat  is  Expense  debited?  ^For  what  credited?  "What  is  generally  included  under  the  title  **Cash"? 
*» Under  the  title  ^'Merchandise"^  ^ Under  the  title  '* Expense"?  "Under  the  title  ''Bills  Receiv- 
able "  ?    «•  Under  the  title  '  •  Bills  Payable  "  ? 

Note. — Before  proceeding  with  the  month  of  March,  study  the  following  rule  and  explanations  for  the  Bank 
account,  and  also  the  examples  given  below  illustrating  the  rule. 


BANK. 


Dr. 


Cr. 


"*  Bank  is  credited  when  a  check  is  drawn  upon 
the  bank. 


""  Bank  is  debited  when  a  deposit  is  rnade  in 
the  bank. 

'"  The  checks  drawn  by  other  persons,  which  come  into  your  possession,  should  be  journalized  as 
Cash.  Debit  Cash  when  you  receive  such  checks,  and  credit  Cash  when  you  dispose  of  them.  (See 
form  of  check  on  page  28.) 

Note. — The  following  examples  will  illustrate  the  rule  given  above  for  journalizing  the  Bank  account. 


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28 


THEOKETICAL   AND    PRACTICAL    BOOK  KEEPING. 


EXAMPLE    No.  30. 


DAY    BOOK    RECORD. 


iTVlfS.         TOTAL. 


JOURNAL    ENTRY    FOR    SAME. 

I)R. 


CR. 


Opened  an  account  at  City 
Bank,  and  deposited, 
Cash. 


1500 

i 

J 

City  Bank,  Dr. 

To  Cash,  Cr. 


1500 


150( 


EXAMPLE    No.   31. 


DAY   BOOK    RECORD. 


JOURNAL    ENTRY    FOR   SAME. 


Bo't  of  W.  E.  Brown, 
25  bbls.  Flour.  @  8.00, 

Paid  for  same   by  cheek 
on  City  Bank,  t 


200 


Mdse.,  Dr. 

To  City  Bank,  Cr. 


200 


200 


EXAMPLE    No.  32. 


DAY    BOOK    RECORD. 


JOURNAL   ENTRY    FOR   SAME. 


Keceivc'd  of  H.  A.  Strong, 
iiis  check  on  First  Ma- 
tional  Bank,  in  settle- 
ment of  his  account. 


1 

200 

1 

1 

Cash,  Dr. 

To  H.  A.  Strong,  Cr. 


200 


200 


EXAMPLE    No.   33. 


DAY   BOOK    RECORD. 


JOURNAL   ENTRY    FOR   SAME. 


Paid  J.  A.  Richmond,  on 
account,  H.  A.  Strong's 
check  on  First  National 
Bank, 


20< 


J.  A.  Richmond,  Dr. 

To  Cash,  Cr. 


200 


200, 


Note.— The  Bank  account  is  sometimes  kept  in  the  Check  Book  instead  of  in  the  Ledger,  the  balance  in  bunk 
being  considered  as  cash  on  luuid.  When  this  method  is  adopted,  no  entry  is  made  in  the  Cash  account  at  tlie  time  of 
depositing.  Cash  account  being  credited  wlien  a  chcc  k  is  drawn  upon  the  bank.  This  method  of  keeping  the  Bank 
account  will  be  illustrated  in  a  more  advanced  part  of  the  work. 

You  may  now  proceed  to  copy  the  transactions  for  the  month  of  March  into  your  Day  Book.  One  page  only  is 
written  up,  the  remaining  transactions  being  simply  in  the  form  of  a  connected  statement  or  hi.story,  from  which  you 
are  to  copy,  arranging  the  work  as  heretofore.  In  a  few  cases  references  are  made  to  similar  transactions,  to  assist  you 
in  the  proper  arrangement  of  the  work  in  your  Day  Book. 


Fourth  National  Bank, 

Ok  Cincinnati. 


Pay  to 


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THEORETICAL   AND   J»RACTICAL   BOOK  KEEPING. 


29 


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30 


59,  pa.  7. 
48,  pa.  B. 


87,  pa,  7. 

40,  pa.  «. 


67,  pa.  7. 
7«,  pa.  7. 
40,  pa.  6. 


47,  pa.  «. 
68,  pa.  7. 
Zi,  pa.  6. 


Ex.30,  p. 

28. 


39,  pa.  6. 

59,  pa.  7. 

L'3,  pa.  6. 

48,  pu.  ti. 


89,  pa.  6. 
80,  pa.  7. 


Ex.  31,  p. 
2b. 


7o,  pa.  7. 
39,  pa.  «. 
60,  pa.  7. 


.'}9,  pa.  6. 
«0,  pa.  7. 
78,  pa.  7. 


THKOHKTICAL    AND    PKACTRAL    BOOKKEEPING. 

I  MARCH    7.    188-. 

Sold  Clark,  Sons  &  Bradley,  on  *^-,  3750  lbs.  Lard,  (a)  13|c.  Arrange  this  transaction  in  vour 
Day  liook  same  as  Feb.  lU,  i)age  24.     (See  note  at  bottom  of  l>age. ) 

9. 

Sold  D.  B.  Martin,  20  bbls.  Pork,  @  13.25;  ,30  bbls.  Flour,  @  8.25;  15  bbls.  Beef,  @  15.75. 
Kec'd  i)ayment  by  note  at  90  days.     (See  form  of  Day.  Book  entry,  Feb.  9.) 

Paid  February  Gas  Bill,  in  Cash,  4.75.     (See  form  of  Day  Book  entry,  Jan.  6.) 

10. 

Paid  my  note  of  Feb.  20,  favor  of  H.  W.  Stevens,  in  Cash.  (For  amount  of  this  note,  see 
Day  Book,  Feb.  20;  and  for  form  of  Day  Book  entry,  see  Feb.  11.) 

11. 
Roc'd  Cash  of  Clark,  Sons  &  Bradley,  on  %  200.00. 

12. 

Prepaid  my  note  of  Feb.  23,  favor  of  L.  J.  Peek,  due  Mar.  18th,  433.75.  Discount  to  maturity, 
0  days,  43c.     Balance  i)aid  in  Cash,  433.32.     (See  Day  Book  form,  Feb.  28.) 

13. 
Paid  David  Bailey,  Cash  on  %  02.50. 

Bo't  of  W.  A.  Bancroft,  000  lbs.  V.  II.  Tea,  @  65c.;  1000  lbs.  Java  Coflfe,  0^,  28c.     Gave  him, 

in  })ayment,  my  note  at  10  days,  with  interest,  500.00;  balance  on  ^.     (Day  Btiok  form, 

Feb.  18.) 

14. 

Opened  an  account  at  College  Bank,  and  deposited  Cash,  500.00.  (See  example  No.  30,  on 
page  28,  for  form  of  Day  Book  entry. ) 

15. 

Sold  Ford  &  Co.,  20  bbls.  Flour,  @  8.25;  18  bbls.  Beef,  @  15.75;  30  bbls.  Pork,  @  13.50. 
Rec'd  in  j)ayment.  Cash,  353.50;  their  note  at  10  days,  with  interest,  300.00;  balance  on 
^c.     (See  Day  Book  form,  March  0.) 

16. 

Rec'd  Cash  of  Ford  &  Co.,  for  their  note  of  Feb.  21st,  due  to-day.     (See  your  Day  Book,  Feb. 

21,  for  amount  of  this  note.) 

17. 

Paid  J.  S.  Baker,  Cash  in  full  of  ^;.     (See  his  "^  in  your  Ledger  for  amount  you  owe  him.) 

18.  1 

Bo't  of  11.  W.  Stevens,  100  bbls.  Salt,  @  2.15,  and  paid  for  same  by  check  on  College  Bank. 
(See  Example  No.  31,  on  page  28,  for  form  of  Day  Book  entry,  and  form  of  check  on 
page  28.) 

D.  B.  Martin  prepaid  his  note  of  0th  inst.,  due  June  10th,  748.75.  Discount  to  maturity,  83 
days,  10.22.     Rec'd  Cash  for  balance,  738.53.     (See  Day  Book  form,  Feb.  22.) 

Sold  D.  V.  Bell,  for  Cash,  50  bbls.  Salt,  @  2.55. 

20. 
Rec'd  Cash  of  Moore  &  Collins,  for  their  note  of  5th  inst.,  due  to-day,  with  interest.     Face  of 
note,  500.00;  interest  to  date,  15  days,  1.23.     (See  Day  Book  form,  Feb.  17.) 

21. 
Deposited  Cash  in  College  Bank,  1200.00. 

22. 

Sold  Wardwell  &  Vance,  for  Cash,  10  bbls.  Pork,  @  13.1i>;  10  bbls.  Beef,  @  15.50. 

Note. — Whenever  the  fraction  is  five  mills  or  over,  add  anotber  (jHt ,  when  less  than  five  mills,  drop  the 
fraction.  • 


\ 


^ 


4 


•     / 


•h 


39,  pa.  6. 
53,  pa.  7. 


3B.  pa.  6. 
40,  pa.  0. 


67,  pa.  7. 
7.5.  pn.  7. 
Ill,  p.  37. 


23,  pa.  6. 
Ill,  p.  27. 


THEOKKTICAL    AND    PRACTICAL    BOOK-KEEPING.  SI 

23. 

Sold  Henry  F.  Mixer,  the  House  and  Lot  No.  718  Main  St.,  for  Cash,  2300.00. 

24. 
Student  ( )  drew  Cash  from  the  business,  for  i)rivate  use,  125.00. 

25. 
Rec'd  of  Moore  &  Collins,  their  note  at  20  days,  to  balance  «/c,  130.30.     (See  Day  liook  form, 

Feb.  5th.) 

26. 

Sold  Sickles,  Stover  &  Jackson,  800  lbs.  Java  Coffee,  @  32c. ;   180  lbs.  Y.  11.  Tea,  (^  85c. 
Rec'd  in  payment,  Cash,  209.00;  balance  on  «/c. 


» 


Paid  my  note  of  13th  inst.,  favor  Bancroft,  due  to-day,  with  interest,  by  check  on  College 
Bank.     Face  of  note,  500.00;  interest  to  date,  13  days,  1.07.     (See  Day  Book  form,  Feb. 

25.) 

27. 

Gave  W.  A.  Bancroft  a  check  on  College  Bank,  to  apply  on  %  500.00. 

Rec'd  Cash  of  Sickles,  Stover  &  Jackson,  on  %  50.00. 

28. 
Rec'd  Cash  of  Ford  &  Co.,  for  their  note  of  15th  inst.,  due  to-day,  with  interest.     Face  of 
note,  300.00;  interest  to  date,  13  days,  G4c. 

29. 
Paid  Book-keeper's  salary  for  the  month  in  Cash,  75.00, 

30. 
Rec'd  Cash  of  Clark,  Sons  &  Bradley  on  %  100.00. 

31. 
Deposited  Cash  in  College  Bank,  3500.00. 

Paid  Rent  of  Store,  by  check  on  College  Bank,  25.00. 

j^oxi: — Copy  the  Inventories  as  given  below  into  your  Day  Book,  immediately  following  the  transactions  for 
March.  When  the  inventory  includes  a  long  list  of  goods,  a  separate  book,  called  the  "Inventory  Book,"  may  be 
employed. 

RESOURCE    INVENTORIES,   MARCH   31,  188-. 


MERCHANDISE. 


100  bbls.  Flour, 
50     '*      Salt, 
COO  lbs.  Y.  H.  Tea,  - 
800     "   Java  Coffee, 


Office  Safe,  valued  at 
"      Books, 


EXPENSE. 


7.00, 

i 
700 

2.13, 

,  106 

50 

65c. 

!  390 

28c.  I 

224 
250 

1420 

50 

300 

50 


lis 


An  Inventory  represents,  generally,  property  on  hand,  as  in  the  case  above.  "*It  may,  however, 
represent  a  debt  owing  to  us  or  owing  by  us,  such  as  interest  accrued  on  notes,  unpaid  rent,  etc.  "^  An 
Inventory  may,  therefore,  show  either  a  resource  or  a  liability. 

"®  In  business,  the  inventory  of  goods  on  hand  is  usually  found  by  going  through  the  store,  weigh- 
ing, measuring  or  counting  the  articles,  "Uhcir  value  being  estimated  usually  at  the  i)rice  at  which 
they  could  then  be  purchased.  ""In  some  kinds  of  wholesale  business  it  is  advantageous  to  keep  what 
is  called  a  '"  Stock  Book,"  from  which  the  quantity  of  goods  on  hand  can  be  determined  &t  ony  time, 
and  with  much  less  labor  than  by  the  method  described  above. 


3? 


THEORETICAL    AKD    PKACTICAL    BOOK  KEEPING. 


Note. — Having  completed  copying  the  Day  Book  for  March,  journalize  the  transactions,  consulting  the  examples 
and  rules  to  wliich  references  are  made,  as  you  may  find  it  necessary.  After  you  have  journalized  the  entire  month, 
before  commencing  to  post,  write  up,  ou  foolscap  paper,  the  checks  mentioned  in  the  transactions  of  March  IS  and  26 
(see  form  of  check  on  page  28),  and  present  them,  with  your  Journal,  to  the  teacher  for  approval. 

POSTING   MARCH. 

The  business  of  March  being  a  continuation  of  that  of  January  and  February,  it  will  be  posted 
under  the  same  ledger  headings,  opening  such  new  accounts  as  may  be  refpiired. 

Give  all  new  accounts  in  this  month  one-half  of  a  page  space,  excepting  College  Bank,  which  will 
require  one  page. 

BALANCE   SHEET. 

After  you  have  completed  the  posting  for  March,  you  may  next  "'make  out  a  ''Balance  Sheet," 
for  the  purpose  of  ascertaining  the  exact  condition  of  the  business  at  the  j)resent  time. 

""The  Balance  Sheet  as  illustrated  on  page  M  combines  with  tiie  Trial  Balance  a  statement, 
exhibiting  in  a  condensed  and  convenient  form  for  reference,  the  Resources,  Liabilities,  Losses  and 
Gains  of  the  business.  In  performing  this  work,  it  is  of  the  utmost  importance  to  you  that  you  do 
not  merely  copy  the  form  of  Balance  Sheet.  To  do  the  work  understandingly,  securing  a  knowledge 
of  the  relations  of  the  various  accounts  to  the  business,  it  is  absolutely  essential  that  you  take  each 
step  in  the  order  indicated,  and  perform  the  work  precisely  as  directed  in  the  instructions  which  follow. 


GUIDE  FOR  MAKING  BALANCE  SHEET  FOR  MARCH. 

If  you  have  not  in  your  Trial  Balance  book  a  form  ruled  to  correspond  with  the  one  shown  on 
page  34,  you  will  rule  a  sheet.  First  take  a  trial  balance  of  your  Ledger,  precisely  as  instructed  for 
January  and  February;  that  is,  foot  the  accounts  in  pencil,  and  carry  the  footings  to  the  Jirst  two 
columns  of  your  Balance  Sheet.  Do  not  extend  any  amounts  to  the  other  columns  until  you  have 
thus  drawn  off  into  your  Balance  Sheet  all  of  the  ledger  accounts  and  footed  the  columns,  to  ascertain 
whether  your  Ledger  is  in  balance.  If  your  trial  balance  proves — that  is,  if  the  first  two  columns  foot 
equally — your  next  step  will  be  to  extend  the  Resources,  Liabilities,  Losses  and  Gains,  as  shown  by 
the  various  accounts  as  follows: 

CASH. 

Commence  with  Cash,  it  being  the  first  account  in  your  Balance  Sheet,  following  the  Proj)rietor's 
(Student's)  account.  "'The  difference  between  the  Dr.  footing.  15871.91— the  cash  received — and  the 
Cr.  footing,  15530.49— the  cash  paid  out — is  341.42,  which  you  are  to  extend  to  the  Resource  column 
in  your  Balance  Sheet,  because  it  is  the  cash  on  hand.     (See  32,  page  6.) 

MERCHANDISE. 

*"  First  enter,  in  the  Resource  column,  the  Mdse.  on  hand — that  is  the  Inventory  as  shown  on 
page  31 — 14J0.50.  (See  32,  page  6.)  Make  tlie  entry  in  red  ink,  to  distinguish  it  from  the  resources 
shown  by  the  ledger  accounts.  Next  find  the  gain  on  Mdse.  account  by  either  of  the  following 
methods,  and  extend  into  the  Gain  column  of  your  Balance  Sheet  803. G2.     (See  31,  page  6.) 


•^  First  Method. 

Sales  of  Mdse.  (Cr.  footing), 9,377. 62 

Inventory  (goods  on  hand,  page  31),...    1,420.50 


Cost  of  Mdse.  (Dr.  footing), , 


10,798.12 
9,994.50 


Gives  the  gain, 803. 62 


'"Second  Method. 

Sales  of  Mdse 9,377.62 

Cost  of  Mdse 9,994.50 

Inventory   ''     -   1,420..50 


Gives  the  gain. 


8,574.00 


803.62 


H.  W.  STEVENS. 
'"The  Cr.  footing  of  his  account  is  IvMO,  and  the  debit  footing  775.     You  are  to  extend  to  the 
Liability  column  the  difference,  435,  because  it  is  the  balance  you  owe  him.     (See  33,  page  6.) 

FORD  &  CO. 
"•The  debit  footing  of  their  account  is  200,  and,  there  being  no  credit,  extend  the  200  to  the 
■Resource  column,  it  being  the  amount  they  owe  you.     (See  32,  page  6.) 


4' 


THEOKETIOAL    AND    PKACTICAL    BOOK- KEEPING. 


33 


I 

I 

1} 


'^ 


EXPENSE. 

'■'  First  enter,  in  the  Resource  column,  the  Expense  Inventory,  300,  given  on  page  31.  (See  32. 
page  6.)  Enter  the  item  in  red  ink,  as  explained  for  Mdse.  Inventory.  Next  enter,  in  the  Loss 
column,  320.05,  the  loss  on  Expense  account  (see  30,  page  6).  "*This  you  will  find  by  deducting  the 
Expense  Inventory,  BOO,  from  the  Dr.  footing  of  Expense  account,  620.05,  because  the  Safe  and  Books, 
when  bought,  were  charged  to  Expense  account,  and  are  therefore  included  in  the  Dr.  footing,  620.05. 

JAS.  T.  HOAG.  * 

The  Dr.  footing  of  his  account  is  123.75,  and  the  Cr.  footing  25.  You  are  to  extend  to  the 
Resource  column  the  difference,  98. 75,  because  it  is  the  balance  he  owes  you  (32,  page  0). 

WELLS.  JOHNSON  &  CO. 
The  Cr.  footing  of  their  account  is  968.75,  and  the  Dr.  footing  200.     You  are  to  extend  to  the 
Liability  column  the  difference,  768.75,  it  being  the  balance  you  owe  them  (33,  page  6). 

BILLS   PAYABLE. 

**«The  difference  between  the  Cr.  footing,  2383.75  (the  notes  issued),  and  the  Dr.  footing,  2083.75 
(notes  redeemed),  is  300,  which  you  are  to  extend  to  the  Liability  column,  it  being  the  Bills  Payable 
outstanding  (33,  page  6). 

BILLS   RECEIVABLE. 
'***The  difference  between  the  Dr.  footing,  2854.80  (the  notes  received),  and  the  Cr.  footing, 
2724.50  (notes  disposed  of),  is  130.30,  which  you  are  to  extend  to  the  Resource  column,  it  being  the 
Bills  Receivable  on  hand  (32,  page  6). 

DAVID  BAILEY  and  W.  A.  BANCROFT. 
Same  instructions  and  explanations  for  these  accounts  as  given  above  for  H.  W.  Stevens'  account. 

INTEREST. 

'''  The  difference  between  the  Cr.  footing,  2.17  (the  interest  allowed  to  us),  and  the  Dr.  footing, 
1.92  (the  interest  allowed  by  us),  is  25c,  which  you  are  to  extend  to  the  Gain  column  (31,  page  6). 

DISCOUNT. 

'"'The  difference  between  the  Dr.  footing,  16.64  (the  discount  allowed  by  us),  and  the  Cr.  footing, 
3.16  (the  discount  allowed  to  us),  is  13.48,  which  you  are  to  extend  to  the  Loss  column  (30,  page  6). 

SICKLES,  STOVER  &.  JACKSON. 
Same  instructions  and  explanations  as  given  above  for  Jas.  T.  Hoag's  account. 

REAL  ESTATE. 

'"  The  difference  between  the  Cr.  footing,  2300  (the  returns  from  sales),  and  the  Dr.  footing,  2000 
(the  cost),  is  300,  which  you  are  to  extend  to  the  Gain  column  (31,  page  0). 

CLARK,   SONS  &  BRADLEY. 
Same  instructions  and  explanations  as  given  above  for  Jas.  T.  Hoag's  account. 

COLLEGE   BANK. 

^^  The  difference  between  the  Dr.  footing,  5200  (the  amount  deposited),  and  the  Cr.  footing, 
1241.07  (the  amount  withdrawn),  is  3958.93,  which  you  are  to  extend  to  the  Resource  colnmn,  it  being 
the  balance  on  deposit  in  the  bank  (32,  page  6). 

You  may  now  foot  the  remaining  columns  of  your  Balance  Sheet,  viz:  the  Resource,  Liability. 
Loss  and  Gain  columns,  after  which  make  a  summary  of  the  results,  as  shown  in  the  form  of  Balance 
Sheet  on  page  34. 

'^  When  the  losses  exceed  the  gains,  the  difference  is  called  the  *'Net  Loss."  ^^  In  such  case  the 
Net  Loss  is  to  be  deducted  from  the  Net  Investment,  to  find  the  Present  Worth. 

'"  When  the  Liabilities  exceed  the  Resources,  the  Proprietor  is  said  to  be  **  Insolvents" 


34 


TIIEOUKTICAL     AND    IMIACTICAL    liOOK-KKKPINO. 


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TIIEOUETICAL    AND    PRACTICAL    BOOK-KEEPING. 


:^5 


Note. — On  April  1  you  are  to  admit  P.  W.  Leonard  as  a  partner  in  your  business.  You  may  therefore  close  your 
Ledger,  witli  tliat  object  in  view,  a-s  explained  l)elow. 

First  read  carefully  tlie  following  "General  Rules  for  Closing  the  Ledger,"  and  then  procttnl  with  the  work  ati 
instructed  under  "Guide  for  Closing  the  Ledger  for  March,"  on  page  36. 


CLOSING   THE    LEDGER. 

'**lt  is  {!Ustomary  in  business,  once  a  year  at  least,  to  take  an  inventory  of  goods  on  hand,  '^'and 
close  those  {iccounts  in  tlie  Ledger  which  show  losses  and  gains,  ""for  the  purpose  of  carrying  the  Net 
Gain  or  Net  Loss  to  the  I*roprietor's  account,  thereby  causing  it  to  show  his  i)resent  worth. 

'" 'J'he  remaining  accounts  at  such  time,  that  is,  those  showing  resources  and  liabilities,  are  not 
usually  closed.  '"All  of  the  accounts,  however,  may  be  and  sometimes  are  closed,  the  object  l>eing  to 
mark  a  i»eriod,  or  new  starting  })oint  in  the  business,  as  the  beginning  of  a  new  business  year,  the 
admission  of  a  new  i)artner,  or  the  oi)ening  of  a  ncAv  Ledger. 

GENERAL    RULES    FOR    CLOSING   THE    LEDGER. 

'"LOSS  AND  GAIN  ACCOUNT  OPENED. 
Open  an  account  with  **  Loss  and  Gain,"  at  the  top  of  the  first  blank  page  following  the  last 
account  in  your  Ledger,  if  you  have  not  already  opened  such  an  account. 

•"ACCOUNTS  CLOSED  IN  THE  ORDER  IN  WHICH  THEY  APPEAR  IN  THE  LEDGER. 
To  economize  time,  and  to  avoid  omissions,  close  the  accounts  in  the  order  in  which  they  stand  in 
the  L<^dger,  omitting  the  Proprietor's  account  until  all  the  other  accounts  in  the  Ledger  have  been  closed. 

"^ACCOUNTS  HAVING  RESOURCE  INVENTORIES  CLOSED. 
If  an  account  lias  a  Kesource  Inventory,  enter  the  amount  of  it  on  the  credit  side  of  tlie  account, 
in  red  ink,  using  for  explanation  "Inventory."  Next  enter,  on  the  smaller  side  of  the  account,  in  red 
ink,  tlie  difference  between  the  sides,  using  for  explanation  "  Loss  and  Gain."  Next  rule  up  the  account 
and  enter  the  footings,  carrying  the  Inydntory  below  the  rulings,  on  the  debit  side  of  the  account,  in  black 
ink.  Next  transfer  the  loss  and  gain  amount  to  the  opposite  side  of  Loss  and  Gain  account,  in  black  ink, 
using  for  explanation  the  title  of  the  account  you  are  closing,  as  "Expense"  or  "Merchandise." 

'^ACCOUNTS  HAVING  LIABILITY  INVENTORIES  CLOSED. 
If  an  account  has  a  Liability  Inventory,  enter  the  anlount  of  it  on  the  debit  side  of  the  account,  in 
red  ink,  using  for  exjdanation  "  Inventory."  Next  enter/ on  the  smaller  side  of  the  account,  in  red  ink, 
the  difference  between  the  sides,  using  for  exjdanation  "  Loss  and  Gain."  Next  rule  up  the  account  and 
enter  the  footings,  carrying  the  Inventojy  below  the  rulings  on  the  credit  side  of  the  account,  in  black 
ink.  Next  transfer  the  loss  and  gain  amount  to  the  Opposite  side  of  Loss  and  Gam  account,  in  Idack 
ink,  using  for  explanation  the  title  of  the  account  you  are  closing,  as  "Expense"  or  "Interest." 

'"ACCOUNTS  SHOWING  GAINS  HAVING   NO  INVENTORIES  CLOSED. 
Enter,  on  the  debit  side,  in  red  ink,  "  Loss  and  Gain,"  and  the  difference  between  the  sides  of  the 
account.     Rule  up  the  account,  enter  the  footings,  and  transfer  the  loss  and  gain  amount  to  the  cre<lit 
side  of  Loss  and  Gain  account,  in  black  ink,  using  for  explanation  the  title  of  the  account  vou  are 
closing,  as  "Mdse.,"  "Real  Estate,"  etc. 

"« ACCOUNTS  SHOWING  LOSSES  HAVING  NO  INVENTORIES  CLOSED. 
Enter,  on  the  credit  side,  in  red  ink,  "  Loss  and  Gain,"  and  the  difference  between  the  sides  of  the 
account.     Rule  up  the  account,  enter  the  footings,  and  transfer  the  loss  and  gain  amount  to  the  debit 
side  of  Loss  and  Gain  account,  in  black  ink,  using  for  exjdanation  the  title  of  the  account  you  are 
closing,  as  "Expense,"  "Interest,"  etc. 

"'ACCOUNTS  SHOWING  RESOURCES  CLOSED. 
Enter,  on  the  credit  side  of  the  account,  in  red  ink,  "Balance"  and  the  difference  l>etwt»en  the 
sides.     Rule  and  foot  the  account,  and  carry  the  difference  below  the  rulings,  on  the  debit  side,  in  black 
ink,  using  for  exi)lanatioii  "  Balance." 

'«•  ACCOUNTS  SHOWING  LIABILITIES  CLOSED 
Enter,  on  the  debit  side  of  the  account,  in  red  ink,  "Balance"  and  the  difference  ])etween  the  sides. 
Rule  and  foot  the  account,  and  carry  the  difference  below  the  rulings,  on  the  credit  side,  in  bliick  ink, 
using  for  explanation  "Balance." 


86 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


"'LOSS  AND  GAIN  ACCOUNT  CLOSED. 
Enter  on  the  smaller  side  of  Loss  and  Gain  account,  in  red  ink,  tlie  proprietor's  name  and  the 
difference  between  the  sides,  Avliicli  difference  will  be  the  Net  Gain  or  Net  Loss.  Rule  and  foot  the 
account,  and  carry  the  difference  to  the  opposite  side  of  the  proprietor's  account,  in  bhick  ink,  usmg 
*'  Loss  and  Gain"  for  exi)lanation.  In  case  of  a  i)artner8hii),  the  difference  should  be  divided  according 
to  the  terms  of  the  partnership  contract,  and  each  ])artner'8  name  and  share  entered  separately  m  the 
Loss  and  GaTn  account,  and  afterward  transferred  to  tlie  opi>osite  side  of  his  individual  account. 

»»THE  PROPRIETOR'S  ACCOUNT  CLOSED. 
Enter  on  the  smaller  side,  ''Present  Worth''  and  the  difference  between  the  sides,  in  red  ink. 
Rule  and  foot  the  account,  and  bring  tlie  difference  below  the  rulings  on  the  credit  side  of  the  account, 
in  black  ink,  using  '*  Present  Worth  "  for  exi)lanation.  In  case  the  debit  side  of  the  proprietor's  account 
is  greater,  the  difference  will  be  entered  as  "  Lisolvency."  In  case  of  a  partnership,  each  partner's 
account  should  be  closed  as  described  above.     This  completes  the  closing  of  the  Ledger. 

Note.— After  you  have  carefully  read  the  "General  Rules  for  Closing  the  ledger,"  given  above,  you  may  proceed 
with  the  work  of  closini^  your  Ledger. 

To  assLst  you  in  applying  the  foregoing  rules,  a  few  closed  accounts  are  shown  on  pages  38  and  39,  and  explicit 
directions  are  given  below  f^  every  step  to  l)C  taken,  and  you  should  follow  these  directions  very  carefully.  Take  each 
step  in  the  exact  order  indicated,  and  perform  the  work  nrecLscly  as  directed, 

GUIDE  FOR  CLOSING  THE  LEDGER.  MARCH  31,  188-. 

First,  at  the  top  of  a  new  page  in  your  Ledger,  open  an  account  with  Loss  and  Gain.  Simply 
write  the  heading.     No  entry  is  to  be  made  in  the  account  for  the  present. 

Then  turn  to  the  first  account  in  your  Ledger  following  the  Proprietor's  (Student's)  account, 

which  is 

CASH. 

On  the  first  vacant  line  on  the  Cr.  side  of  this  account  say,  in  red  ink,  '*  Mar.  31,  Balance,  341.42." 
Next  rule  and  foot  the  account.     (See  Cash  account  closed,  on  i)age  38.) 

'*»  In  ruling  an  account,  draw  the  red  line  directly  upon  the  blue  line.  In  the  double  ruling,  draw 
the  lines  as  close  as  possible  and  not  have  them  run  together.  Rule  on  the  mme  line  on  both  sides  of 
the  account,  even  if  there  be  a  larger  number  of  entries  upon  one  side  than  upon  the  other.     (See 

ruling,  on  page  38. ) 

'^  The  8i)ace  for  Cash  on  page  2  having  been  filled,  open  another  Cash  account  at  the  top  of  a  new 
page  in  your  Ledger,  and  transfer  the  balance,  341.42,  forward  to  the  new  account,  as  follows:  On  the 
Dr.  side  of  the  new  Cash  account  say,  m  black  ink,  "Apr.  1,  Balance,  341.42." 

'» In  the  page  column  of  the  old  Cash  account,  enter  the  i)age  of  the  new  account,  to  show  where 
the  balance  was  tramf erred  to;  and  in  the  page  column  of  the  new  account,  enter  the  page  of  the  old 
account,  to  show  where  the  balance  was  tranxferred  from. 

'^Red  ink  entries  in  the  Ledger  indicate  that  the  amounts  so  entered  are  to  he  transferred  to  some 

other  place. 

MERCHANDISE. 

On  the  Cr.  side  of  this  account  enter,  first,  the  inventory.  Say,  in  red  ink,  *'  Mar.  31,  Inventory, 
1420.50."  Then,  on  the  Dr.  side,  enter  the  gain.  Say,  in  red  ink,  "  Mar.  31,  Loss  and  Gain,  803.62," 
and  enter  in  page  column  the  page  of  the  Loss  and  Gain  account.  Next  rule  and  foot  the  account  (see 
Mdse.  account  closed,  on  page  38).  Next  transfer  the  gain  to  the  Cr.  side  of  the  Loss  and  Gain  account. 
Say,  in  black  ink,  "  Mar.  31,  Mdse.,  803.02,"  and  enter  page  of  Mdse.  account.  Next  transfer  the  inven- 
tory below  the  ruling  oi  the  Mdse.  account,  on  the  Dr.  side.     Say,  in  black  ink,  "Apr.  1,  Inventory, 

1420.50." 

H.  W.  STEVENS. 

On  Dr.  side  of  this  account  say,  in  red  ink,  "Mar.  31,  Balance,  435."     Next  rule  and  foot  the 

account.     Next  transfer  the  balance  below  the  ruling  on  the  Cr.  side.     Say,  m  black  ink,  "Apr.  1, 

Balance,  435."     (See  Stevens'  account  closed,  on  page  38.) 

FORD  &.  CO. 
Only  one  item  having  been  posted   to  this  account  since  it  was  balanced  and  ruled  u]»,  it  is 
unnecessary  now  to  close  it,  the  balance,  200,  being  shown  as  it  stands. 

EXPENSE. 
On  the  Cr.  side  of  this  account  enter,  first,  the  inventory.     Say,  tn  red  ink,  "  Mar.  31,  Inventory, 
300."     Next  enter,  on  the  same  side  of  the  account,  the  loss.     Say,  in  red  ink,  "Mar.  31,  Loss  and 
Gain,  320.05,"  and  enter  page  of  Loss  and  Gain  account.     Next  rule  and  foot  the  account.     Next 


I'HEOKETICAL    AND    PRACTICAL    BOOK-ttEEPlNG. 


37 


\ 


transfer  the  loss  to  the  Dr.  side  of  the  Loss  and  Gain  account.  Say,  in  black  ink,  "  Mar.  31,  Exi>euse, 
320  05  "  and  enter  page  of  Expense  account.  Next  transfer  the  inventory  below  the  ruling  of  the 
Expense  account,  on  the  Dr.  side.  Say,  in  black  ink,  "Apr.  1,  Inventory,  300."  (See  Expense  account 
closed,  on  page  39.)  ^^^    ^    ^^^^ 

On  Cr.  side  of  this  account  sav,  in  red  ink,  "Mar.  31,  Balance,  98.75."  Next  rule  and  f<K»t  the 
account.  Next  transfer  the  balance  below  the  ruling,  on  the  Dr.  side.  Say,  in  black  ink,  "Apr.  1, 
Balance,  98.75."     (See  Hoag's  account  closed,  on  page  39.) 

WELLS,  JOHNSON  &.  CO. 
Take  the  same  steps  in  closing  this  account  that  you  did  in  closing  11.  W.  Stevens'  account.     (See 
directions  for  closing  his  account,  on  x>age  36.) 

BILLS  PAYABLE. 
On  the  Dr.  side  of  this  account  sav,  in  red  ink,  "Mar.  31,  Balance,  300."     Rule  and  foot  the 
account,  and  transfer  the  balance  below  the  ruling,  on  the  Cr.  side.     Say,  in  black  ink,  "Apr.  1,  Bal- 

""^^'^''•"  BILLS  RECEIVABLE. 

On  the  Cr.  side  of  this  account  sav,  in  red  ink,  "Mar.  31,  Balance,  130.30."  Rule  and  foot  the 
account,  and  then  transfer  the  balance  below  the  ruling  on  the  Dr.  side.     Say,  in  black  ink,  "  Ajir.  1, 

Balance,  130.30."  .....     r^A^^  o/^r-r 

DAVID   BAILEY  and  W.  A.  BANCROFT. 

Same  instructions  as  given  for  closing  H.  W.  Stevens'  account. 

INTEREST. 

On  Dr.  side  of  this  account  say,  in  red  ink,  "Mar.  31,  Loss  and  Gain,  25c,"  and  enter  page  of  Loss 
and  Gain  account.  Next  rule  and  foot  the  account.  Next  transfer  the  gain  to  the  Cr.  side  of  the  Loss 
and  Gain  account.     Say,  in  black  ink,  "Mar.  31,  Interest,  25c,"  and  enter  page  of  Interest  account 

(See  Interest  account  closed,  i)age  39. ) 

^  DISCOUNT. 

On  Cr.  side  of  this  account  say,  in  red  ink,  "Mar.  31,  Loss  and  Gain,  13.48,"  and  enter  page  of 
Loss  and  Gain  account.  Rule  and  foot  the  account;  then  transfer  the  loss  to  the  Dr.  side  of  the  I^ss 
and  Gam  account.  Sav,  in  black  ink,  "Mar.  31,  Discount,  13.48."  (Remember  ahvays  to  enter  the 
number  of  the  page,  when  amounts  are  transferred  to  or  from  some  other  page  in  the  Ledger. 

SICKLES.  STOVER  &  JACKSON. 

Same  instructions  as  given  for  closing  Jas.  T.  Hoag's  account.     (See  Hoag's  account  closed,  on 

l^^^^''-^  REAL  ESTATE. 

On  Dr.  side  say,  in  red  ink,  "  Mar.  31,  Loss  and  Gain,  300."  Rule  and  foot  the  account,  and  then 
transfer  the  gain  to  the  Cr.  side  of  Loss  and  Gain  account.     Say,  in  black  ink,  "  Mar.  31,  Real  Estate, 

QOO   " 

CLARK.  SONS  &  BRADLEY. 
Same  instructions  as  given  for  closing  Jas.  T.  Hoag's  account. 

COLLEGE  BANK. 
On  Cr.  side  say,  in  red  ink,  "  Mar.  31,  Balance,  3958.93."    Rule  and  foot  the  account,  and  transfer 
the  balance  below  the  ruling  on  the  Dr.  side.     Say,  in  black  ink,  "Apr.  1,  Balance,  3958.93." 

LOSS  AND  GAIN. 
On  Dr.  side  of  this  account  say,  in  red  ink,  "Mar.  31,  Student,  770.34."    Rule  and  foot  the  account; 
then  transfer  the  Net  Gain  to  the  Cr.  side  of  Student's  account.    Say,  in  black  ink,  "  Mar.  31,  I>iss  and 
Gain,  770.34."     (See  account  closed,  on  page  39.) 

STUDENT. 
On  Dr.  side  of  this  account  say,  in  red  ink,  "  Mar.  31,  Present  Worth,  5170.34."     Rule  and  foot 
the  account;  then  transfer  the  difference  below  the  ruling,  on  the  Cr.  side.     Say,  in  black  ink,  "  Apr. 
1,  Present  Worth,  5170.34."     (See  account  closed,  on  page  38.) 

Your  Ledger  is  now  closed,  and  the  purpose  of  such  closing  has  been  accomplished,  viz:  '"The 
Proprietor's  account  has  been  made  to  show  his  present  worth,  and  »»the  resources  and  liabilities  i-ei>- 
resenting  such  present  worth  are  exhibited  below  the  rulings  of  the  various  accounts  showing  them. 

Note.— This  subject  continued  on  page  40. 


38 


TIIEOItin'ICAL    AND    PRACTICAL    BOOK-KEEPING. 


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THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


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40 


THEOREllCAL    AND    PRACTICAL    BOOKKEEPING. 


II' 

!i' 


"*  In  closing  the  accounts,  the  equilibrium  of  the  Ledger  has  not  been  disturbed,  *"  as,  in  every 
instance  where  an  amount  was  entered  in  an  account,  either  upon  the  debit  or  credit  side  of  the 
Ledger,  the  same  amount  was  immediately  transferred  to  the  opposite  side  of  the  Ledger,  either  in 
some  other  account  or  below  the  rulings  of  the  same  account,  tlius  keeping  the  Ledger  constantly  in 
balance.  A  trial  balance,  to  prove  that  your  Ledger  is  now  in  balance,  should  be  taken,  and  if  correct 
will  correspond  with  the  following: 

TRIAL  BALANCE  OF  LEDGER  BALANCES,  APRIL  1,  188-. 

"'LIABILITIES   (Cr.    Balances). 

Bills  Pavable, 

Personal  Accounts, 


161 


RESOURCES  (Dr.   Balances). 

Cash, 341.43 

Mdse.  Inv 1,430.50 

Expense  Inv. 300.00 

Bills  Receivable, 130.30 

College  Bank 3,958.93 

Personal  Accounts, 660. 94 


Total  Resources, 6,813.09 


Total  Liabilities, 

Student's  Present  Worth, 


300.00 
1,341.75 

1,641.75 
5,170.34 


6,813.09 


Note. — After  yon  have  proved  your  Ledger  to  be  in  balance,  as  above  indicated,  you  will  be  ready  to  proceed  with 
the  month  of  April.  Before  doing  so,  however,  write  out  upon  foolscap  paper  answers  to  the  following  questions,  and 
present  them,  with  your  books,  to  the  teacher  for  approval. 

QUESTIONS   FOR   REVIEW. 


Page  5. — ''*  What  is  Book-keeping?  *"*  Describe  the  use  of  tlie  Day  Book.  *'"  The  Journal. 
'*"**  The  Ledger.     **Givc  the  three  kinds  of  accounts  used  in  Double  Entry. 

Page  6. — *^**  Give  the  rule  for  journalizing  Personal  accounts.  '*"*•  Property.  *'**  Allowances. 
"  Into  how  many  general  classes  are  the  three  kinds  of  accounts  divided?  '"When  does  an  account 
show  a  Loss?  *'  When  a  Gain?  '^''  What  is  a  Resource?  '^  Liability?  "*""  Give  the  rule  for  journalizing 
the  Proprietor's  account.     ^'^  Cash.     *''-*^  Mdse. 

Page  7.—"-"  Expense.     '«*"  Bills  Receivable.     "•'  Bills  Payable.     ""  Interest,  Discount,  etc. 
Page  30. — *'  What  is  a  Trial  Balance?    "'**  Why  does  it  not  prove  the  Ledger  abtolutely  correct? 
"  When  may  an  account  be  omitted  from  the  Trial  Balance? 

Page  31. — *'  Wliat  is  the  first  thing  to  be  done  to  locate  an  error  in  the  Trial  Balance?  **'*''  The 
second?  **  What  effect  would  the  omission  of  an  amount  in  posting  have  upon  the  Trial  Balance? 
"*  W' hat  if  posted  to  the  wrong  side  of  the  Ledger?  '°*  What  is  the  peculiarity  of  an  error  caused  by 
figures  having  been  transposed?  ""  Wlien  all  of  the  short  tests  for  finding  the  error  fail,  what  is  it 
necessary  to  do  as  a  final  resort?  '"^"'**  Why  is  it  necessary  to  indicate  by  a  check  mark  in  the  Ledger 
that  each  item  has  been  examined? 

Page  37. — ""*'"  Give  the  rule  for  journalizing  Bank  account.  "*  How  are  the  checks  of  other 
parties  in  your  hands  treated? 

Page  31. — "*""*  Wliat  is  an  Inventory?  "*■'"  How  found  usually,  and  at  what  price  are  the  goods 
estimated? 

Page  33. — "^  W^hat  are  exhibited  in  the  Balance  Sheet?  '"In  what  column  are  the  Inventories 
entered?    '^'■'**  How  is  tlie  gain  on  Mdse.  found? 

Page  33. — '**  How  is  the  loss  on  Expense  found? 

Page  34. — What  does  the  difference  between  the  footings  of  the  columns  of  Resources  and  Liabili- 
ties show?  (See  Summary,  also  137,  page  33.)  What  does  the  difference  in  the  footings  of  the 
columns  of  Losses  and  Gains  show?  (See  Summary,  also  135,  page  33.)  How  is  the  Present  AVorth 
of  the  proprietor  ascertained?     (See  Summary,  also  136,  page  33.) 

Page  35. — '"  Wliat  new  account  is  it  sometimes  necessary  to  open  in  closing  the  Ledger?  '**In 
what  order  should  the  accounts  of  the  Ledger  be  closed?  "*  How  are  accounts  having  resource  inven- 
tories closed?  '"^  How  are  accounts  having  liability  inventories  closed?  "'  How  are  accounts  showing 
gains,  having  no  inventories,  closed?  '**  How  are  accounts  showing  losses,  having  no  inventories, 
closed?  '*•  How  are  accounts  showing  resources  closed?  '*"  How  are  accounts  showing  liabilities 
closed? 

Page  36. — "'  How  is  the  Loss  and  Gain  account  closed?  '"  How  is  the  Proprietor's  account  closed? 
How  are  partners'  accounts  closed? 


I 


( 


THEORETICAL    AKD    PRACTICAL    BOOKKEEPING. 


41 


Note.— Before  proceeding  with  the  month  of  April,  study  carefully  the  following  explanations  and  examples  on 
pages  41,  42,  43  and  44. 

DRAFTS. 


163 


A  Draft  is  the  written  order  of  one  party  upon  a  second,  requesting  the  payment  of  a  sum  of 
money  to  a  third.  '"The  party  drawing  the  draft  is  the  '* Drawer."  '"The  party  upon  whom  the 
draft  is  drawn  is  the  "  Drawee."     '**  The  party  to  whom  the  draft  is  made  payable  is  the  "  Payee. "* 

'"  The  draft  is  employed,  usually,  as  a  medium  of  exchange  between  distant  places,  obviating  the 
expense  and  risk  of  sending  money. 

'**  Drafts  may  be  drawn  with  reference  to  time  in  three  different  ways,  viz:  "» At  sight,  *™a  speci- 
fied number  of  days  after  sight,  or '"  a  specified  number  of  days  after  date.  '"Drafts  drawn  "at 
sight "  are  presented  to  the  Drawee  for  payment.     '"  Time  drafts  are  presented  for  "acceptance." 

"*  Acceptance,  when  applied  to  drafts,  signifies  the  written  acknowledgement  of  the  Drawee,  that 
he  agrees  to  the  conditions  named  in  the  draft.  "'  This  he  does  by  writing  across  the  face  of  the  draft, 
usually  in  red  ink,  to  distinguish  the  acceptance  from  the  other  writing,  the  word  Accepted,  the  date, 
where  payable,  and  his  signature.  "*It  is  not  necessary  to  date  the  acceptance  when  the  draft  is 
drawn  a  given  number  of  days  after  date. 


^ 


t-t'^ryv^^'n/ 


z^yiy 


In  the  above  draft,  Simon  Duncan  is  Drawer,  J.  V.  W^entworth  is  Drawee,  and  Eric  Hunter  is 
Payee.  The  parties  sustain  the  following  relations  to  each  other:  Duncan  owes  Hunter,  and 
Wentworth  owes  Duncan.  Duncan,  who  resides  in  Baltimore,  draws  the  draft  and  remits  it  to 
Hunter,  who  resides  in  Albany.  Immediately  upon  its  receipt,  Hunter  presents  it  to  Wentworth, 
who  also  resides  in  Albany,  for  acceptance.  Hunter  will  then  hold  Wentworth's  written  promise  to 
pay,  which,  if  paid  at  maturity,  will  cancel  the  indebtedness  of  both  Duncan  and  Wentworth. 

"'  The  Payee  has  no  legal  claim  against  the  Drawee  until  after  the  draft  has  been  accepted. 

"*  There  need  necessarily  be  but  two  parties  to  a  draft.  "'  The  Drawer  may  make  the  draft  pay- 
able to  himself,  in  which  case  he  either  sends  it  to  the  Drawee  to  be  accepted  and  returned,  or,  if  his 
(the  Drawer's)  credit  be  unquestioned,  he  may  dispose  of  it  before  acceptance. 

'^'What  are  termed  "Bank  Drafts"  constitute  a  large  proportion  of  the  business  transacted 
through  this  medium  of  exchange.  '"  All  banks  keep  money  deposited  with  one  or  more  of  the 
banks  located  at  some  one  of  the  commercial  centers  of  the  country,  as  New  York,  Boston,  Chrcago, 
San  Francisco,  New  Orleans,  etc.,  against  which  they  draw  drafts  to  sell  to  their  cuetomers  for  remit- 
tance to  creditors,  these  drafts  passing  everywhere  current  as  cash. 

SPECIAL  INSTRUCTIONS  FOR  JOURNALIZING   DRAFTS. 

DRAWER'S  ENTRIES. 


'**  When  he  draws  a  draft  and  remits  it  to  the  Payee,  to  apply 
on  account,  he  makes 

'"  When  he  draws  a  draft  and  disposes  of  it,  less  discount, 
receiving  cash  for  proceeds. 


Payee,  Dr. 

Cash, 
Discount, 


To  Drawee, 


To  Drawee, 


42 


THEORETICAL    AND    PRACTICAL    BOOK-KEEl'lNO. 


IS4 


tas 


tM 


DRAWEE'S  ENTRIES. 
When  he  accepts  a  draft  drawn  on  Iiim  on  account. 

When  lie  pays  a  sight  draft  drawn  on  liini  in  cash. 


When  lie  prepays  a  time  draft,  in  cash,  less  discount,  instead 
of  accepting  ir. 


m 


When  he  pays  his  acceptance  at  maturity,  in  cash. 


Drawer, 
Drawer, 
1 )  rawer, 

Bills  Payable, 


To  Hills  Payable, 
To  Cash, 

To  Discount, 
"  Cash, 

To  Cash, 


Cash, 

Discount, 

To  Drawer, 

Bills  Keceivable, 

a^o  Cash, 

"  Discount, 

PAYEE'S  ENTRIES. 

-When  he  receives  a  time  draft  from   Drawer,  to  apply  on  I  Bills  Receivable, 
account,  and  has  had  it  accepted.  m    ,. 

^  I  io  J)rawer, 

""  When  the  Drawee  prepays  the  draft  in  cash,  less  discount, 
instead  of  accepting  it. 

""  When  he  buys  the  draft  of  the  Drawer,  instead  of  receiving 
It  on  account,  the  Drawer  allowing  him  the  discount.  "^ 

GENERAL   RULE   FOR  JOURNALIZING   DRAFTS  WHEN   DRAWN  ON  ACCOUNT. 

»'  Debit  the  person  who  draws  the  draft  on  you.      -  Credit  the  person  on  whom  you  draw  a  draft, 
in  th^?r~^'  following  examples  and  explanations  are  given  to  illustrate  the  application  of  the  principles  embodied 

;:  :^i^r  ;^f  r;;;i:::ir^:'.:;;;-^ '-''"  -'  ^^  -^^-^  ^-  -  ^^  -^  -  ----  ^  --«^ 

EXAMPLES  ILLUSTRATING  JOURNAL  ENTRIES  OF  ALL   PARTIES  TO   DRAFTS. 

UNDER  DIFFERENT  CONDITIONS. 


EXAMPLE    No.   34. 


cS  <D 


1-    ^ 

g  ^  3  -^  ^ 

Jr    «i     -*     "» 


1500.00. 


Detkoit,  Mich.,  Aj)r.  1,  188-. 


O     «>      S3 


:3     H 


Thirty  days  after  date,  for  value  received,  i)ay  to  Smith  &  Ogden,  or  order. 
Five  Hundred  Dollars,  and  charge  the  same  to  my  account. 

To  Frost  &  Selden,  fi.  h.  DINGMAN. 

Philadcli)bia,  Pa. 

Due  May  4,  188-. 


Dingman's  entry,  if   he   sends  above  draft  to 
Smith  &  Ogden  to  apj)ly  on  account. 


Smith  &  Ogden, 

To  Frost  &  Selden, 


500 


Frost  &  Selden's  entry  when  they  accept  the 
drjift. 


600 


R.  II.  Dingman, 


To  Bills  Pay., 


500 


500 


Smith  &  Ogden's  entry  at  time  of  receiving  the 
draft  fr«im  Dingman  on  account. 


Bills  Rec'v, 

To  R.  II.  Dingman, 


500 


500 


m 


THEORETICAL    AND    PRACTICAL    BOOKKEEPING. 


EXAMPLE    No.  35. 


43 


ii!2oo.oo. 


Richmond,  Va.,  Apr.  G,  188- 


At  sight,  pay  to  the  order  of  E.  T.  Crouch,  Two  Hundred  Dollars,  for 

value  received,  and  charge  same  to  the  account  of 

GOSS  &  FARNS WORTH. 
To  Eaton,  Clark  &  Co., 

New  York. 


Goss  &  Farnsworth's  entry  at  time  of  drawing 
the  draft  and  remitting  it  to  Croucii,  on  account. 

E.  T.  Crouch, 

To  Eaton,  Clark  &  Co. 

200 

00 

20000 

E.  T.  Crouch's  entry  at  time  of  receiving  draft 
of  Goss  &  Farnsworth,  on  account. 

Cash, 

To  Goss  &  Farnsworth, 

200 

00 

200  00 

i 

Eaton,  Clark  &  Co.'s  entry  at  time  of  paying 
the  draft,  in  cash. 

Goss  &  Farnsworth, 

To  Cash, 

200  00 

1 

200 

00 

EXAMPLE    No.   36. 


1600.00. 

Burlington 

,  Iowa,  Apr. 

10, 

188-. 

* 

At  ninety  days' 

sight,  pay 

to  the 

order  of  A. 

M.   Gordon, 

Six 

Hundred 

Dollars, 

value  received. 

and  charge 

!  to  ac 

count  of 

• 

BIGELOW  & 

CO. 

To 

Hatch,  Mills  &  Pardee, 

Chicago, 

111. 

Bigelow  &  Co.'s  entry  at  time  of  drawing  the  1 
draft  and  sending  it  to  A.  M.  Gordon,  on  account. 

A.  M.  Gordon,                     | 
To  Hatch,  Mills  &  Pardee, 

600 

00 

000  00 

A.  M.  Gordon's  entry  if,  when  he  presents  the 
draft.  Hatch,  Mills  &  Pardee  prc})ay  it  in  cash, 
less  discount  93  days,  instead  of  accepting  it. 

Cash, 
Discount, 

To  Bigelow  &  Co.,  ' 

590 
9 

83' 
17 

1 

600 

00 

Hatch,  Mills  &  Pardee's  entry  at  time  of  pre- 
j)aying  the  draft  as  above  stated. 

Bigelow  &  Co., 

To  Cash, 

"  Discount, 

'  600 

00 

590 
9 

83 

i: 

EXAMPLE    No.  37. 


day  book  record. 


ITEMS.       total- 


journal    ENTRY    FOR    SAME. 

DR. 


CR. 


Accepted  J.  T,  Brown's 
draft  on  us,  at  10  days' 
sight, favor  of  D.  Woods, 
to  apply  on  account. 


400 


J.  T.  Brown, 

To  Bills  Payable, 


400 

i 

400 

We  owe  Brown  the  above  amount.  He  therefore  has  the  right  to  order  us  to  pay  it,  either  to 
himself  or  to  another.  In  accepting  the  draft — that  is,  in  agreeing  to  its  conditions  in  writing — we 
issue  our  written  promise  to  pay,  and  must  therefore  credit  Bills  Payable.  We  debit  Brown  because 
we  get  out  of  his  debt  by  agreeing  in  writing  to  })ay  this  amount  to  another  party. 


44 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


DAY    BOOK    RECORD. 


EXAMPLE    No.   38. 


JOUBNAT.    ENTRY    FOR   SAME. 


Drew  a  draft  at  60  days  ■ 
after    date,    on    Marsh 
Bro's,  Kansas  City,  and 
discounted    it    at    City 
Bank, 
Discount  for  63  days, 
Rec'd  cash  for  proceeds, 


1 


1)4 


{mm 


100 


Discount, 
Cash, 


To  Marsli  Bro's, 


1 

98 


04 
96 


100 


Marsh  Bro's  owe  us  the  above  amount,  due  in  60  days.  Having  immediate  use  for  the  money,  we 
draw  a  draft  upon  them  and  get  it  discounted  at  City  Bank.  By  paying  the  above  draft,  Marsh  Bro's 
will  get  out  of  our  debt.  We  therefore  give  them  credit,  Cash  and  Discount  being  debited.  Should 
Marsh  Bro's  fail  to  honor  the  draft,  however,  we  should  be  obliged  to  refund  the  money  to  the  bank, 
in  which  case  Marsh  Bro's  would  be  debited  back,  thus  placing  their  account  as  it  was  before  the  draft 
was  drawn. 

EXAMPLE    No.  39. 

'  D.\Y   BOOK    RECORD. JOURNAL   ENTRY   FOR  gAME. 


Pre{)aid  our  acceptance  in 

favor  of  \Vm.  Heath, 
Discount  off,  40  days, 
Paid  balance  in  cash. 


250 

1 

1 

164 

1 

( 

248 

36 

1 

Bills  Payable, 


To  Discount, 
''  Cash, 


250 


164 
24836 


At  the  time  of  accepting  the  almve  draft,  we  issued  our  written  promise  to  pay,  and  therefore  Bills 
Payable  must  have  been  credited.  We  now  debit  liills  Payable,  because  our  written  promise  to  pay 
has  been  redeemed. 

EXAMPLE    No.  40. 

.TOIRNAL    EXTRY    FOR   SAME. 


DAY   BOOK    RECORD. 

Paid  Geo.  D.  Baker's  draft 
on  us,  at  60  days'  siglit, 
less  discount. 

Face  of  draft. 

Discount  off,  63  days. 

Paid  balance  by  check  on 
City  Bank, 


300 

3 

11 

296 

89 

(Jeo.  1).  Baker, 


To  Discount, 
'*   City  Bank, 


300 


311 

296  89 


We  pay  the  above  draft  drawn  upon  us  by  Baker  when  it  is  presented,  instead  of  accepting  it,  and 
therefore  credit  Discount  and  City  Bank  instead  of  crediting  Bills  Payable,  as  in  Example  No.  37 
above. 

EXAMPLE    No.  41. 

, DAYBOOK    RECORD.  JOURNAL    ENTRY    FOR    SAME. 


Had  C.  T.  Meldrum's  ac- 
ceptance discounted  at 
City  Bank, 
Discount  off,  48  days. 
Proceeds    placed    to    our 
credit. 


175 

1 

38 

173 

62 

(■ity  Bank, 
Discount, 


To  Bills  Receivable, 


173 
1 


62 
38 


176 


When  the  above  draft  was  received  by  us  and  accepted  by  Meldrum,  we  must  have  debited  Bills 
Receivable,  because  the  written  promise  to  pay  of  another  person  had  come  into  our  possession.  We 
therefore  credit  Bills  Receivable  now,  because  such  written  promise  to  pay  is  disposed  of. 

Note.— After  you  have  carefully  read  the  foregoing  rules  and  explanations,  you  may  proceed  with  the  month  of 
April.  You  are  to  admit  Mr.  D.  W.  Leonard  as  an  equal  partner  in  the  business,  he  to  invest  an  amount  of  cash  equal 
to  your  present  worth,  as  shown  by  your  Balance  Sheet  of  March  31st. 

In  a  business  conducted  by  a  partnership,  an  account  is  usually  opened  in  the  Ledger  with  each  partner,  in  which 
he  is  credited  with  his  share  of  the  investment  and  also  his  share  of  the  gains,  or  is  debited  with  his  share  of  the  losses. 

A  "  Stock  "  account  is  sometimes  opened  in  a  partnership  business,  instead  of  an  account  with  each  partner,  which 
is  credited  with  the  combined  investment  of  the  partners,  and  at  stated  periods  is  credited  with  the  entire  net  gain  of 
the  business,  or  debited  with  the  net  loss.  In  such  case  a  "  Stock  Ledger"  is  kept  by  the  partners,  upon  which  each 
has  an  account  showing  his  interest  in  the  business. 

In  the  month  of  April  the  first  plan  will  be  adopted. 


1 


THEORETICAL    AND    PRACTICAL    BOOKKEEPING 


45 


yjAyU>  /.  /J'r- 


/ 


^2/Ut-fP^e^nM^  ^.i^Ttyy-cJy^^'T^U^^^iy^ .  ^td-^Ptn^/9^  ^^^ 


/>^^  y^^X^^^^  j^^/ 


/ 


/ 


/c^/ 


/ 


Aj/J2.i;>^.yi^^^  (zajJi^  ..^t^n/  C.^rC-U^^ 


J.  0  0 


/  O  0 


^cfO  G 


uoo 


jq^OTE. The  resources  and  liabilities,  constituting  your  investment,  are  shown  in  the  balances  below  the  rulings  iu 

your  Ledger,  hence  no  entry  of  them  is  required  in  your  Journal. 


i  I 


l! 


, 


46 


60,  pa.  7. 
75.  pa.  7. 
110,  p.  27. 


Ex.37,  p. 


Ea.  .38,  p 
44. 


Ex.  37,  p. 

43. 


THEORETICAL    AND    PRACTICAL    BOOK  KEEPING. 

APRIL   5.   188-. 
Paid  H.  AV.  Stevens,  cash  on  jiccount,  100. 

Had  For,l  &  Co.-.  note  of  a.l  inst.  .iiscountcd  at  Clleg..  Hunk.     Face  of  note,  1()0;  discount 
^5  dajs,  41c. ;  proceeds  credited  to  our  account,  »1)..V.I.     ^JSee  Jiote  No.  1,  below.) 

6. 

days  for  150.00;  balance  on  "/c. 

7. 

Accepted  David  Bailey's  draft  on  us,  at  10  days'  sight,  favor  E.  U.  Andrews,  payable  at  College 
Bank,  to  ai)ply  on  %  500.00.  ^ 

8. 
Drew  a  draft  at  30  days  from  date,  on  Ford  &  Co.,  Baltimore,  and  had  it  discounted  at  College 
Bank,     l^ace  of  draft,  100.00;  discount,  33  days,  54c.;  rec'd  cash,  y9.4(i 


» 


185,  p.  42. 
Ill,  p.  27. 


Accepted  A\^   A.  Bancroft's  (Boston)  draft  on  us,  favor  of  himself,  at  3  days^  sight,  to  balance 

"c,  do.  00. 

9. 
Bo't  of  W.  A.  Bancroft,  Boston,  20  chests  Y.  H.  Tea,  1200  lbs.,  @  65c.     Gave  him  in  pay- 
ment, check  on  College  Bank,  500.00.     Balance  on  % 

10. 


Ex.  37,  p. 
43. 


Deposited  cash  in  College  Bank,  1500.00. 


» 


11 


67,  pa.  7. 
76,  pa.  7. 
Ill,  p.  27, 


U2,  p.  41. 


187,  p.  42. 


Accept^ed  IT.  W.  Stevens'  (Detroit)  draft  on  m,  at  30  days  from  Apr.  8th,  fuvor  Howe  &  Orton, 

12. 

Sold  Clark,  Sons  &  Bradley,  New  York,  on  %  10  chests  Y.  H.  Tea,  600  IbV  @  75c  •  5  mats 
Java  Coffee,  400  lbs.,  @  32c.  \ 

13. 

Prepaid  note  given  Wells,  J.  &  Co.,  Mar.  6.     Face  of  note,  300.00;  discount  off  to  maturity, 
25  days,  1.23.      Paid  balance  by  check  on  College  Bank. 

14. 

Drew  a  draft  on  Clark,  Sons  &  liradley.  New  York,  at  sight,  and  remitted  it  to  David  Bailey 
on  "/c,  300.00.  ^' 


»> 


188,  p.  42. 


Paid  our  acceptance  of  8th  inst.,  favor  of  Bancroft,  due  to-day,  in  cash,  38.00.     (Sec  Note 

15. 

Rec'd  cash  of  Sickles,  Stover  &  Jackson,  on  «t,  50.00. 

16. 

Rec'd  from   Moore  &  Collins,  Buffalo,  to  apply  on  %  their  draft  at  3  days'  sight,  on  L.  M. 
llorton,  which  Ilorton  acce])ted,  200.00. 

17. 
Rec'd  cash  of  Moore  &  Collins  for  their  note  of  Mar.  25th,  due  to-day,  130.30. 

to  our  credit  in  the  Bunk  i.s  equivalent  to  making  a  depo.sit. 

>..twl?!.  ^'''  ^■~^'"'  ^^V^^f' ''  ^'-  ''^'"'"'*'  •'"''  '""^''^^  i"'"^'''  '^  ^'-'^  redeemed.  Studc-nt  mu.st  di.stingui..h 
between  th«  expressions  -  Paul  our  acceptance,"  and  "Paid  draft  on  ua."  K.member  that  a  draft  drawn  Z  .« 
18  not  a  Bdls  Payable  until  we  have  accepted  it.  »    u  "i  iis 


Ex.33,  p. 
44. 


187,  p.  42. 
ill,  p.  27. 


30,  pa.  6. 
60,  pa.  7. 
78,  pa.  7. 


182,  p.  41. 
75,  pa.  7. 


3R.  pa.  fi. 
eo,  pa.  7. 


47,  pa.  6. 
68,  pa.  7. 
24,  pa.  6. 


59,  pa.  7. 
34,  pa.  «. 


3»,  pa.  6. 
75,  i)a.  7. 
fiO,  pa.  7. 


THEORETICAL    AND    PRACTICAL    BOOK-K  EEFING. 


18. 


47 


Prepaid  our  acceptance  of  11th  inst.,  favor  Howe  &  Orton.     Face  of  acceptance,  200.00;  dis 
count  to  maturity,  23  days.     Paid  balance  in  cash.     (See  Note  No.  1,  below.) 

19. 
Sold  R.  H.  Barnard,  City,  on  %  50  bbls.  Salt,  @  2.55. 

20. 
Our  acceptance  of  7th  inst.,  favor  Andrews,  due  to-day,  at  College  Bank,  has  been  charged  by 
the  Bank  to  our  ^^c.     (See  Note  No.  2  below.) 

21. 

F.  W.  Warren  paid  his  note  of  3d  inst.,  and  interest,  due  to-day,  in  cash.  Fane  of  note, 
200.00;  interest  to  date,  18  days. 

Drew  a  draft  at  60  days  from  date,  on  Sickles,  Stover  &  Jackson,  Detroit,  and  remitted  it  to 
H.  W.  Stevens,  on  <^,  less  discount.  Face  of  draft,  100.00;  discount  off,  63  da3s. 
Charged  the  balance  to  his  ^c. 

22. 

Rec'd  cash  of  L.  M.  Horton,  for  his  acceptance  of  16th  inst.,  due  to-day. 


Paid  Rent  of  Store  in  cash,  25.00. 


» 


23. 


Rec'd  of  R.  H.  Barnard,  his  note  at  20  days,  with  interest,  to  apply  on  ^,  50.00. 

24. 
Student  drew  cash  from  the  business  for  his  private  use,  50.00. 

25. 
Drew  a  draft  on  F.  W.  Warren,  Avon,  at  30  days'  sight,  favor  of  ourselves,  to  balance  ^;  and 
sent  draft  to  him  to  be  accepted  and  returned.     Amount  of  draft,  75.00.     (This  is  simpl} 
a  memorandum;  no  journal  entry  is  required  until  draft  is  returned. 

26. 

Bo't  of  Beekman  &  Ordway,  Phil'a,  20  hhds.  N.  0.  Molasses,  1260  gals.,  (nt  50c.     Accepted 
their  draft  on  us,  favor  themselves,  at  60  days'  sight,  315.00.     Balance  on  «^. 


Deposited  cash  in  College  Bank,  1000.00. 


y* 


27. 


F.  AV.  Warren  returned  draft  accepted.     Acceptance  dated  Apr.  26.     (See  Apr.  25,  above. ) 


>5 


Paid  our  note  of  4th  inst.,  favor  Wells,  Johnson  &  Co.,  and  interest,  due  to-day,  by  check  on 
College  Bank.     Face  of  note,  400.00;  interest  to  date,  23  days. 

28. 

Paid  W.  A.  Bancroft,  on  %  by  check  on  College  Bank,  175.00. 


Paid  Bookkeeper's  Salary  in  cash,  75.00. 


29. 


30. 


A  fire  i^  our  store  last  night  damaged  our  entire  stock  of  Tea.     No  insurance.     Sold  the 
entire  lot  to-day  at  auction  for  cash;  1200  lbs.,  @  25c. 


»» 


Discounted  F.  W.  Warren's  acceptance,  received  27th  inst.,  at  College  Bank.     Face  of  accept- 
ance, 75.00;  discount  off,  29  days.     Rec'd  cash  for  the  proceeds. 

Note  No.  1.— Compute  Interest  and  Discount  at  6  per  cent.,  on  a  basis  of  365  days  for  a  year. 

Note  No.  2. — Since  in  the  acceptance  of  this  draft  we  made  it  payable  at  College  Bank,  the  bank  charges 
it  to  our  account  the  same  as  a  check. 


I  • 


I  =  Total,    1926  38 
I  =  Total,      265  00 


48 

'»'"^<^RETICAL    AND    PRACTICAL    KOOK  KKEPINQ. 

INVENTORIES,  APRIL  30,  188-. 

Note. -Copy  the  Inventory  in  your  Day  Book  in  the  form  shown  on  page  31. 

MDSE.  ]^^^  ^'''J^^-  l^l^iir,  @  7.00;  30  bbls.  Sugar,  7500  lbs.,  @  ll^c  • 

(  400  lbs.  J.  Coffee,  @  28c. ;  12G0  gals.  Molasses,  @  50c. 

EXPENSE.    J  ^^^^  ^^^^'  valued  10  ^  below  cost.     250.00-25.00=225.00 
(      "     Books,     **     20^       -       -  50.00-10.00=   40.00. 

NoTE.-Aftef  copying  the  Day  B(H,k.  an.l  Inf.^re  proceeding  to  jonrnHlize.  druw  up.  on  cap  paper  and  nre^n.  ..  .K 
teacher  for  appnn.al.  the  draf.s  referred  to  in  transacti.n.s  April  11,1.  14th.  KMh  and  2  .h.     Z  form  'of  d  ^^  naL 
41.  42  and  4.}.     Next  j.>urMali/e  an.l  post.     If  an  account  get.  crowchd  for  space  transfer  it  toTnJw  «f      ?  ^  f 
mstrucons  (154,  page  8(5)  for  transferring  an  account.     Opcnleonurd's  account  i^the  mTdd  e  o    ^.^Tn  ""'l'^  ^"^ 
Give  personal  account.s  hereafter  one-fourth  of  a  page  spu-e;  oOurs  one  half  of  a  page.  ^  '^^'• 

On  May  Ist  Alex  Mitchell  is  to  be  admitted  as  a  partner;  you  may  therefore  make  out  Balance 
Sheet  similar  to  that  for  March.  In  the  form  of  Balance  Sheet  given  below,  only  a  few  of  the 
amounts  are  extended,  the  student  being  required  to  complete  the  extensions,  foot  the  columns  and 
prove  h.s  results,  as  indicated  in  the  Summary  below.  (Kefer  to  -Guide  for  making  Balance  Sheet 
for  March,    on  page  32,  aud  also  to  -Trial  Balance  and  Balance  Sheet  for  March,''  on  page  34  ) 

?rTtwo  1  ''  ^'7  '''  'n  'r'  't  "'"'""'^  '"  >""^  ^^''^'^  '"  P^'-*^^'  ->d  --y  the  footings  to  the 
hrst  tHo  columns  of  your  Balance  Sheet,  and  foot  those  columns,  to  ascertain  whether  your  Ledger  is 

columt'^Shtld  r  r;T'  '^  r^'"^'  the  Resources,  Liabilities,  Losses  and  Gains' to  the  other 
columns.  Should  the  first  two  columns  not  foot  e<,uaHy-in  other  words,  should  your  trial  balance 
not  prove-turn  to  page  21  and  consult  instructions  94  to  109,  to  assist  you  in  finding  the  error. 

TRIAL  BALANCE  AND  BALANCE  SHEET,  APRIL  30.  188-. 


lu  r. 


1 
1 
4 
5 


Student, 

D.  W.  Leonard, 

Mdse. 

H.  W.  Stevens, 

Expense, 

Jas.  T.  Hoag, 

Moore  &  Collins,- 

Wells,  J.  &  Co. 

Bills  Payable, 

Bills  Receivable, 

David  Bailev, 

VV.  A.  Bancroft, 

Interest, 

Discount, 

Sickles,  S.  &  J. 

Clark,  Sons  &  B. 

College  Bank, 

Cash, 

R.  H.  Barnard, 

Beekman  &  0. 


DR.  rOOTINO 


50 

3943 
398 
400 


9G 


CR.  FOOTING. 


905 


5170 

5170 

1743 

435 


34 
34 


RB80URCK8. 


30         705 


51 


30 


59 


MABILITIBg. 


SJOO 


3G 


04 


I^>SHK8. 


GAI.NS. 


92 


SUMMARY. 


Total  Losses, 
"     Gains, 

Net  Loss, 


Total  Resources, 
"     Liabilities, 

Present  Worth  of  Firm 


409  90 


409  90 


11333  07 
145:^  29 

9880  78 


Student's  Net  Investment, 
"        i  Net  Loss, 


5120  34 
204  95 


Present  Worth,       -  4915  39 

D.  W.  Leonard's  Net  Invest.,    5170  34 

i  Net  Loss,        204  95 


n 


it 


Present  Worth  of  Firm 


Pres.  AVorth, 


4965  39 
9880  78 


on  nfx7p;^''"'^  ""  *''"""''  ''""*"^'  '"""  ""*  ^"""'  "'"^  '^^  P^'"^"^'-'"*'  "^^^•"""''*  -'-  '"  »>«  -»-«^-     ^^  iu«tructioas 


TirKouprncAL    and   practical   BOOK-KKKPIXG. 


40 


If  iiio  accounts  ill  ytnir  Li'dgcr  arc  correct,  the  difference  between  the  Dr.  and  C-r.  footings  ot  those 
accoimts  not  exteii(k'd  in  tiic  above  Balance  Sheet  Avill  be  as  follows:  Cash,  1129.51;  Wells,  J.  &  Co., 
208.75;  Bills  Payable,  315;  Moore  &  C,  G3. 50;  Bailev,  412.50;  Discount,  30c. ;  Bank,  7083.24;  Bancroft, 
105;  Clark,  S.  &  B.,  470.19;  Sickles,  S.  &  J.,  20;  Barnard,  77.50;  Beekman  &  0.,  315;  Hoag,  98.75. 

CLOSE  ONLY  THE  ACCOUNTS  SHOWING  LOSSES  AND  GAINS. 
After  completing  your  Balance  Sheet  for  April,  jiroceed  to  close  in  the  Ledger  those  accounts  only 
which  exhibit  losses  and  gains,  together  with  the  Loss  and  Gain  and  Partners'  accounts,  in  accordance 
with  the  General  Rules  for  Closing  the  Ledger,  on  pages  35  and  30.  For  assistance  in  closing  Mdse., 
see  145,  page  35;  Expense,  145,  i)age  35;  Interest,  148,  j>age  35;  Discount,  148,  jjage  35;  Loss  and  Gain 
account  (for  partnership),  151,  i)age  30;  Student's  and  Leonard's  accounts,  152,  page  30. 

Note. — Tlie  debit  and  credit  sides  of  your  Ledger  remain  equal  after  closing  the  above  mentioned  account.^,  tlie  same 
as  though  all  the  accounts  had  been  closed,  nince  the  amount  entered  to  close  an  account  was  immetliatcly  transfernti, 
either  to  tlie  opposite  side  of  the  account  closed,  or  of  some  other  account.  The  accounts  wliich  remain  unclosed  show 
only  Kesources  and  Liabilities,  the  difference  between  which  is  the  Present  Worth,  as  exhibited  by  the  partners'  accounts. 

Before  proceediu"^  with  May,  present  your  books  to  the  teacher  for  approval,  and  be  prepared  to  answer  the  following 

QUESTIONS   FOR   REVIEW. 

Page  41.— ""I  What  is  a  Draft?  '""'«  W^hat  are  the  parties  to  a  draft  called?  '"  How  is  the  draft 
employed?  "*"'"  State  the  three  ways  of  drawing  drafts  in  reference  to  time.  •  '"*  What  is  meant  by 
"Acceptance"  when  applied  to  drafts? 

Page  42.— '"-"''  Give  general  rule  for  journalizing  drafts  when  drawn  on  account. 


MAY    1.  188-. 

Alexander  Mitchell  has  this  day  been  admitted  as  a  partner  in  the  business  of  Student  and 
Leonard.  The  name  of  the  new  firm  is  to  be  Student,  Leonard  &  Co.  The  gains  and 
losses  are  to  be  shared  as  follows:     Student,  f ;  Leonard,  f ;  and  Mitchell,  \. 

» 

Alex.  Mitchell  invests  cash,  1000,  and  the  store  now  occupied  by  the  firm,  valued  at  3000. 

Sold  Barton  &  Hathaway,  Binghamton,  25  bbls.  Flour,  @  8.40.  Rec'd  in  payment,  cash. 
100.00.     Balance  on  % 


54,  pa.  7. 
40,  pa.  6. 


47,  pa.  6. 

68,  pa.  7. 


Took  out  Policies  of  Insurance  of  2,000.00  on  store,  and  5,000.00  on  contents,  for  one  year, 
with  A.  S.  Gatchell,  agent.     Paid  premium  on  same  in  cash,  60.00. 


M 


Bo't  of  Grouse  Bro's,  Syracuse,  100  bbls.  Salt,  @  2.15.     Accepted  their  draft  on  us,  at  15 
days'  sight,  payable  at  College  Bank,  for  same. 

4. 

Sold  Gates  &  Sheldon,  on  their  note  at  20  days,  with  interest,  50  bbls.  Salt,  @  2.60. 

6. 
Paid  H.  W.  Stevens,  cash  to  balance  <^.     (See  note  below.) 

7. 
Bo't  of  Henry  D.  French,  Buffalo,  25  bbls.  Beef,  @  14.25;   30  bbls.  Pork,  @  11.50.     Gave 
him  in  payment,  our  note  at  15  days,  with  interest,  345.00.     Balance  on  «/•. 

9. 

Rec'd  cash  of  Moore  &  C,  for  their  note  of  April  0,  due  to-day.     (See  note  below.) 

10. 
Paid  W.  A.  Bancroft's  sight  draft  on  us,  by  check  on  College  Bank,  50.00. 

Note.— Student  will  find  it  necessary,  hereafter,  to  consult  his  books,  to  ascertain  amounts  left  blank  in 
the  record,  such  as  balances  due  on  personal  accounts,  which  will  be  found  in  the  Ledger  if  the  work  h  iS 
all  been  posted;  also  particulars  regarding  notes,  which  will  be  found  in  the  Day  Book  record  at  the  time  of 
giving  or  receiving  them. 


I » 


50 


iia  V.  'ST. 

112,  1>.  -T. 


Zl,  pa.  6. 
64,  |»a.  7. 
m,  1>.  27. 


THKOUE-nOAL   AND    PRACTICAL    BOOK-KEEPINO. 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


51 


Deposited  in  Culleye  Bunk  casl    1(50.00. 


12. 


14. 


Bo't  a  draft  on  Now  York,  200.00,  at  ^  'ji  excliunge.     Paid  for  same  by  check  on  College  Bank, 
200.50.     Keniitted  dratt  to  Beekman  &  Ordway,  on  % 

16. 
Reo'd  cash  of  Sickles,  Stover  &  Jackson,  to  balance  «/^  (see  note  bottom  i)age  40). 


» 


•7,  pa.  7. 
7«,  pa.  7. 
Ill,  p.  27. 


Rec'd  cash  of  K.  11.  Barnard,  for  his  note  of  Apr.  23d,  and  interest,  due  to-day. 

18. 

Sold  E.  F.  Sharpsteen,  Elmira,  630  gals.  N.  0.  Molasses,  @  00c. ;   2500  lbs.  Sugar,  @  13Jc. 

Kec'd  in  i)ayinent,  his  note  at  GO  days,  indorsed  by  B.  W.  Crossmau,  37«.00.     Balance 

on  ^.  (See  forms  of  Indorsement,  page  150.) 

20. 
Our  acceptancfi  of  2d  inst.,  favor  Grouse  Bro's,  due  to-day,  has  been  charged   to  our  <^  at 

College  Bank. 

Rec'd  cash  of  Barton  &  Hathaway,  to  up])ly  on  "jh,  50.00. 

21. 
Prei)aid  our  acceptance  of  Aj)r.  26th,  favor  of  Beekman  &  O.,  by  check  on   College  Bank. 
Face  of  acceptance,  315.00,  discount  to  maturity,  38  days. 

24. 
Paid  cash  for  permanent  repairs  on  store,  100.00.     (Debit  Real  Estate.) 

25. 
Paid  our  note  of  7th  inst.,  and  interest  on  same,  due  to-day,  in  cash.     Face  of  not.-,  345.00; 
interest  to  date,  18  days. 

26. 
Rec'd  of  Jas.  T.  Iloag,  his  check  on  Traders'  Bank,  to  api)ly  on  «<•,  50.00. 

D.  W.  Leonard  drew  from  the  business,  for  his  j.rivate  use,  by  check  on  College  Bank,  100.00. 

27. 
Gates  &  Sheldon  paid  their  note  of  4th  inst.,  and  interest,  due  to-day,  in  cash. 

28. 
Sold  Moore  &  Collins,  on  %  10  bbls.  Beef,  @  17.25;  10  bbls.  Pork,  @  14.00. 

29. 
Paid  Wells,  J.  &  Co.'s  draft  on  us,  at  60  days'  siglit,  200.00,  less  discount,  63  days,  by  check 
on  College  Bank. 


» 


Sold  Clark,  Sous  &  Bradley,  on  %  20  bbls.  Sugar,  5000  lbs.,  @  12|c. 

30. 
Bo't  of  David  Bailey,  10  bbls.  Sugar,  2500  lbs.,  @  ll^c.     Paid  him  cash,  100.00;  check  on 
College  Bank,  100.00.     Balance  on  % 

31. 
Paid  Bookkeeper's  Salary  for  month  in  cash,  75.00. 

Deposited  in  College  Bank,  Iloag's  check,  rec'd  26th  inst.,  50.00;  and  casJi,  1500.00. 

Note.— You  may  now  journalize,  post  and  take  trial  balance.  Should  your  trial  balance  not  prove, 
consult  instructions  94  to  109,  page  21,  for  detecting  the  error.  In  posting,  when  an  account  balances  in  your 
Ledger,  rule  it  up  at  once.  Before  an  account  becomes  too  much  crowded  for  space,  rule  it  up  and  transfer 
to  a  new  account,  as  instructed  in  154-155,  page  30.  Foot  the  accounts  in  pencil,  as  instructed  heretofore 
for  taking  trial  balance.  You  need  not  make  a  Balance  Sheet  this  month,  nor  close  any  of  the  accounts 
in  the  Ledger.  The  diflFereuce  between  tlie  Dr.  and  Cr.  sides  of  a  few  of  the  principal  accounts  are  here 
given:  Wells,  J.  &  Co.,  6^.75;  Bills  Payable,  balances;  Discount,  4.04;  College  Bank,  7556.78;  Cash,  313.13; 
Clark.  Sons«fe  B.,  1113.94;  Mdse.,  1124.63;  Expense,  400.50;  Bills  Receivable,  378.00;  Interest,  34c.  If  your 
trial  balance  proves  your  Ledger  to  be  in  balance,  and  your  accounts  ngree  with  the  balances  given  above,  you 
may  proceed  with  June.  i 


no,  p.  27. 
75,  pa.  7. 
tiO,  pa.  7. 


JUNE    1.    188-. 

Discounted,  at  College  Bank,  S]iari)steen's  note,  rec'd  May  18th.     Discount  off  to  maturity. 
Proceeds  placed  to  our  credit.     (See  Note  !No.  1,  below.) 

2. 
Sold  F.  W.  AVarren,  on  %  5  bbls.  Sugar,  1250  lbs.,  @  12fc. 

Paid  Henry  1).  Frencb's  siglit  draft  on  us,  by  check  on  College  Bank,  200.00. 

3. 

Rec'd  cash  of  Clark,  Sons  &  Bradley,  on  %  400.00. 

5. 
Sold  A.  &  D.  FarAvell,  Canton,  10  bbls.  Beef,  @  16.25;    10  bbls.  Pork,  @   13.50;    10  hhds. 
N.  O.  Molasses,  630  gals.,  @  60c.     llec'd  in  payment,  their  note  at  10  days,  with  intiTest, 
150.00.     Balance  on  "/c. 

6. 
Accepted  David  Bailey's  draft  at  20  days,  favor  Marsh  &  Co.,  to  balance  ^. 

7. 

Bo't  of  Beekman  &  Ordway,  on  ^^,  5  hhds.  N.  O.  Molasses,  315  gals,  @  55c. 

8. 
Rec'd  of  R.  11.  Barnard,  his  check  on  First  National  Bank,  to  balance  ^•. 

9. 
Rec'd  of  E.  F.  Sharpsteen,  his  note  at  30  days,  indorsed  by  B.  W.  Crossman,  on  «^-,  250.00. 

12. 
Bo't  of  Henry  D.  French,  25  bbls.  Beef,  @  14.25.     Accepted  his  draft  on  us  at  10  days,  for 
175.00.     Balance  on  <^. 

13. 
Deposited  in  College  Bank  Barnard's  check,  rec'd  8th  inst. 

14. 
Sold  Sickles,  S.  &  J.,  25  bbls.  Flour,  @  8.25;    1250  lbs.  Sugar,  @  12k.     Rec'd  in  payment, 
cash,  50.00;  their  note  at  45  days,  75.00.     Balance  on  <^. 

15. 
Drew  a  draft  on  Barton  &  H.,  Bingham  ton,  at  90  days,  to  balance  their  %     Had  the  draft 
discounted  at  College  Bank,  and  rec'd  credit  for  proceeds. 

16. 
Paid  W.  A.  Bancroft,  cash  to  balance  ^,  55.00. 

Note  No.  1.— From  June  1,  the  day  the  above  note  is  discounted,  to  July  20,  its  maturity,  the  time  is  49 
days,  counting  the  actual  number  of  days.  The  student  will  rememlx.'r  that  if  the  time  is  in  days,  365  ilays,  or 
If  the  time  is  in  months,  12  mouths  for  a  year,  are  to  be  taken  as  a  basis  in  computmg  interest  and  discount, 
unless  otherwise  specitied. 

When  paper  is  drawn  in  months,  the  practice  differs,  somewhat,  with  places  and  individuals,  as  to 
the  manner  of  liiuling  time,  and  computing  interest  and  discount.  For  the  sjike  of  uniformity  and  accu- 
racy, the  method  explained  Ixilow  will  be  observed  throughout  this  book.  To  illustrate:  A  note  t)f  $500, 
dated  May  17,  at  4  mouths,  is  discounted  June  28.     The  time  between  June  23,  the  day  the  note  is  discounted, 

,      „-   ,,  .     ..      i?  *,         .      S^   mo.  20  da.  )  The  discount  for  2  months  is  5.00 

and  September  20,  the  mat unty  of  the  note,  -j  g     ..     23     "   f    "  "  •'   27  days     "  2  22 

2  mo.  27  days  =  7.22 

If  the  note  to  be  discounted  is  an  interest  l)earing  note,  first  compute  the  interest  upon  the  face  of 
the  note  from  the  date  it  Ix-gins  to  draw  interest  to  maturity;  then  add  the  interest  to  the  face  of  the  note, 
and  compute  discount  upon  the  amount  thus  obtained,  from  the  date  of  discounting  the  note  to  its  maturity. 
The  face,  plus  the  interest,  minus  the  discount,  will  be  the  proceeds  of  the  note. 


52 


THEOKETICAL    AND    PKACTICAL    UUUK-KEKPING. 


THEORETICAL    AND    PRACTICAL    BOOK  KEEPING. 


53 


50      a   7  f  ^'^• 


23,  pa.  6. 

48,  pa.  0. 


•'    I, 


23,  pa.  6. 
•5,  pa.  7. 
HO,  F.a.  7. 
111.  p.  27. 


note  made  by  Chas.  II.  Fisher,  in  lIoag\s  favor,  dated  Mar.  25tli  last,  at    4  iiios.     witli 
interest,  275.00.     Accrued  interest  allowed  him.     Balance  on  «^     (Sec  note  No.  1,  below.) 

18. 
\.  &  1).  Farwell  jiaid  their  note  of  5th  inst.,  and  interest,  due  to-day,  in  easli. 

19. 
Drew  sight  draft  on  F.  AV.AVarren,   Avon,  and  deposited  in   College  Bank  to  our  credit. 
Amount  of  draft,  50.00;  liank's  charges  for  collecuon,  25c.     Balance  to  our  credit. 

20. 
Sold  E.  F.  Shari)8teen,  on  %  5  hhds.  :N.  0.  Molasses,  315  gals.,  @  62ic. 

21. 
Student  drew  cash  from  the  business,  for  his  own  use,  75.00. 

22 
Paid   Henry  D.  French,  the  note  rec'd  of  Sickles,  S.  &  J.,  14th   inst.,  75.00.      Discount  to 
maturity  allowed  him.     Gave  him  our  check  on  College  Bank,  to  balance  his  ^. 

23. 
The  draft  drawn  on  AVarren,  lOtli  inst.,  was  to-day  returned  i)rotested  for  non.i)avment.     Pro- 
test fees,  1.25.     Gave  the  Bank  a  check  to  cover  draft  and  fees,  51.25.     (Sec  Note  No.  2, 
below. ) 

24. 
Accepted  Beekman  &  Ordway's  draft  on  us,  at  30  days'  sight,  favor  of  themselves,  150.00. 

25. 
Rec'd  cash  of  E.  F.  Sharpsteen,  on  t^,  131.25. 

Paid  our  acceptance  of  12th  inst.,  favor  of  French,  by  check  on  College  Bank. 

27. 
Deposited  in  College  Bank,  cash,  500.00. 

29. 

Paid  our  accei)tance  of  6th  inst.,  favor  of  Marsh  &  Co.,  by  check  on  College  Bank. 

30. 
Paid  liook keeper's  Salary  in  cash,  75.00. 

Note  No.  l.-As  tliis  note  has  Kt-n  drawin-  interest  since  March  20th.  it  is  worth  considerably  more  than 
Its  face  at  tliis  time. 

NoTK  No.  3. -The  fees,  under  some  circumstances,  nii-ht  projK'rly  be  charged  to  Warrens  account:  but  in 
this  case  we  charge  them  to  E.xpen.se  account. 


INVENTORIES,  JUNE   30,  188-. 

MDSE. 
50  bbls.  Salt,  @  2.15;  5  bbls.  Beef,  @  14.25;   10  bbls.  Pork,  @  11.50.     Total  Mdse.  Invt.,..       293  75 

REAL  ESTATE. 
Store,  owing  to  advance  in  Real  Estate,  estimated  to  be  worth  at  present  time 3500  00 

EXPENSE. 
Office  Safe  and  Office  Books,  valued  at 200  00 

Insurance,  10  months  unearned  premium, 50  00 


250  00 


Leonard  and  Mitchell  propose  to  buy  Student's  interest  in  the  business,  and  ].ay  him  cash,  as  his 
Present  Worth  shall  show  ui)on  closing  the  Ledger,  they  assuming  all  the  resources  and  liabilities  of 
the  old  firm.  Student  agrees  to  the  proposition,  as  he  is  desirous  of  engaging  in  the  Produce  and 
Commission  business  on  July  Ist. 


You  may  therefore  make  out  a  Balance  Sheet,  showing  the  exact  condition  of  the  business,  as 
heretofore  instructed. 

The  difference  between  the  Dr.  and  Cr.  sides  of  a  few  of  the  principal  accounts  in  your  Ledger, 
independent  of  inventories,  should  be  as  follows:  Bills  Payable,  150.00;  Discount,  41c.;  Cash, 
339.70;  Mdse.,  292.G3;  Expense,  477.00;  Bills  Receivable,  525.00;  Interest,  3.82;  College  Bank, 
7428.83. 

If  correct,  the  results  exhibited  by  your  Balance  Sheet  should  ])e  as  follows: 

SUMMARY. 


Total  Gains,          -         .         _         . 
*'     Losses,    -         -         -         - 

986 
231 

38 
23 

15 

Student's  Net  Investment, 
1  Net  (Jain, 

"          Present  Worth, 

J).  W.  Leonard's  Net  Investment, 
f  Net  Gain,  - 

**                Present  Worth, 

Alex.  Mitchell's  Net  Investment, 
i  Net  Gain,   - 

4840 
302 

4865 
302 

39 
06 

39 
06 

00 
03 

5142 
5167 
4151 

Net  Gain  of  Firm,       -        -        . 

755 

45 

Total  Resources,      .        -        . 
**     Liabilities,  -         -         -         - 

14817 
357 

93 
00 

93 

Present  Worth  of  the  Firm,     - 

14460 

4000 
151 

45 

1              "              Present  Worth, - 
1  Present  Worth  of  the  Firm,     - 

03 

' 

14460 

93 

After  completing  Balance  Sheet,  balance  and  rule  up  all  of  the  accounts  in  the  Ledger.  (See 
General  Rules  for  Closing  the  Ledger,  i)age  35;  also  see  closed  Ledger,  on  pages  38  and  39).  After 
completing  the  work,  jjresent  your  books  to  the  teacher  for  ins])ection;  also  i»repare  for  examination 
upon  all  the  work  passed  over,  as  outlined  by  the  following: 

QUESTIONS  FOR  REVIEW 

Page  5.—'  What  is  Book-keeping?  *  The  object  of  it?  ^  How  many  methods,  and  what  are  they? 
•What  are  the  i)rin('ipal  books  used?  •  Describe  the  Day  Book.  '  When  should  the  record  be  made  in 
the  Day  Book?  "  AVhy?  *  Describe  the  Journal.  '"  What  is  journalizing?  "What  must  be  the  c<mdi- 
tion  of  the  debits  and  credits  in  every  journal  entry?  ""  How  may  the  Day  Book  and  Journal  be 
combined?  "'*  Describe  the  Ledger.  "  What  is  an  account?  "-'»  How  many  sides  has  an  account,  and 
what  called?     ^  What  is  posting?    "  How  many  kinds  of  accounts  in  Double  Entry? 

Page  6.— *»-««  Give  the  general  rules  for  journalizing.  "  Into  what  two  general  classes  are  the  three 
kinds  of  accounts  divided?  ^  When  does  an  account  exhibit  a  Loss?  "When  a  Gain?  ^  When  a 
Resource?  ''  When  a  Liability?  ^  Upon  which  side  is  the  excess  when  an  account  shows  a  Resource? 
^  When  it  shows  a  Loss?  ''  When  it  shows  a  Gain?  '*  When  it  shows  a  Liability?  '«-'^  Give  the  rule 
for  journalizing  the  Proprietor's  account.  ^  What  title  is  sometimes  used  in  place  of  the  proprietor's 
name?  ^-*>  Give  the  rule  for  Cash.  ^' What  is  included,  usually,  under  this  title?  'MVhen  there  is 
any  difference  in  this  account,  which  side  will  always  be  greater?  *^  Why?  **-^'  AVhat  is  the  difference, 
and  what  does  it  show?  *'^Give  the  rule  for  Mdse.  "MVhat  is  usually  included  under  this  title? 
"  What  exception  to  including  all  goods  under  the  general  heading  Mdse. 

Page  7.—"  To  what  other  accounts  will  the  rule  for  Mdse.  ai)ply?  "-"  Give  the  rule  for  Expense. 
"  What  is  usually  included  under  this  title?  "  What  exceptions  to  including  all  such  items  under  the 
general  heading  Expense?  '"-'»  Give  the  rule  for  Bills  Receivable.  ''  What  is  usually  included  under 
this  title?  "  Which  side  of  the  account  will  always  be  greater,  when  there  is  any  difference?  ^  Whv? 
**^  What  is  the  difference,  and  wlurt  does  it  show?  *«  When  will  the  account  balance?  Why?  *'-«  (^iVe 
the  rule  for  Bills  Payable.  «» What  is  included  under  this  title?  'MVhich  side  of  the  account  will 
always  be  greater,  when  there  is  any  difference?  "  Why?  "-"  What  is  the  difference,  and  wliat  does  it 
show?  '*  When  will  the  account  balance?  Why?  ""  Give  the  rule  for  Interest  and  Discount.  "  What 
is  Interest?  "What  is  Discount?  ^"To  what  other  accounts  will  the  rule  for  Interest  and  Discount 
apply? 


•I 


54 


» 


!    I 


THEORETICAL    AND     PKACTICAL    BOOK  KEEPING. 


Page  20.—"  What  is  a  Trial  Balance?  *'-**  Why  does  the  trial  ])alanco  not  prove  the  work  abso- 
lutely correct?  "'«  Exi)lain  footing  the  accounts  for  taking  a  trial  balance.  »«  When  may  an  account 
be  omitted  from  the  trial  balance? 

Page  21.— »*  What  is  the  character  of  the  error,  generally,  when  it  is  an  even  Id,  llO,  1100,  $1000, 
etc.?  »*-"  How  could  an  error  be  made  in  transferring  from  tlie  Ledger  to  the  trial  balance?  '*  If  an 
amount  has  been  omitted  in  lasting,  Avhat  effect  will  it  have  ujum  the  trial  l)alance?  •""  What  if  posted 
to  tiu^  wrong  side  of  the  Ledger?  '"MIow  may  the  error  have  been  caused,  if  it  is  divisible  by  9? 
loa-im  Explain  the  ste])s  to  l)e  taken  in  reviewing  tlie  work,  when  this  course  is  found  necessary  in  onler 
to  detect  the  error.  ""*-"*»  In  examining  the  posting,  why  is  it  necessary  to  place  a  check  mark  in  the 
Ledger? 

Page  27.—"*-"'  (Jive  the  rule  for  journalizing  Bank  account.  "*  How  should  the  checks  of  other 
persons  in  your  hands  be  treated? 

Page  31.— "MVhat  does  an  Inventory  generally  represent?  "*  What  nuiy  it  represent?  "MVhat 
will  an  inventory  show  in  each  case?  "*  How  is  an  inventory  usually  taken?  "'  What  i)rice  is  generally 
placed  upon  the  goods?     "*  In  what  other  way  nuiy  an  inventory  be  found? 

Page  32.— "Tor  what  purpose  is  a  Balance  Sheet  nuule?  '*»  Describe  the  balance  sheet.  '*'  Into 
which  column  is  the  ditTcrence  between  the  Dr.  and  Cr.  footings  of  (!ash  extended?  Why?  ""Why  is 
the  Mdse.  inventory  entered  in  the  Rescmrce  column?  '*'-'*^  Explain  both  nu'thods  of  finding  the  gain 
on  ^Idse.  account,  when  there  is  an  inventory.  '"  When  the  Cr.  side  of  a  i)erson's  account  is  lar«rcr 
than  the  Dr.,  to  which  column  is  the  difference  extended?  Why?  '*«  When  the  Dr.  footing  is  the 
larger? 

Page  33. — "*  How  is  the  actual  loss  on  Ex]>ense  account  ascertained,  when  there  is  valuable  j»ro])- 
erty  on  hand,  which  was  originally  debited  to  the  Expense  account?  "'What  does  the  difference  in 
the  Bills  Payable  account  show?  Why?  '*•  In  the  Bills  Receivable  account?  Why?  '"'  If  the  Cr.  side 
of  Interest  or  Discount  is  larger  than  the  Dr.,  why  is  the  difference  a  gain?  "*  If  the  Dr.  side  is  larger, 
why  is  the  difference  a  loss?  "•■•  What  does  the  difference  in  Real  Estate  account  show?  Why?  '^  In 
liairk  account?     Why? 

Page  34. — What  is  the  difference  between  the  total  gains  and  total  losses  called?  (Summarv;  see 
also  135,  i)age  33.)  Give  the  two  ways  of  finding  the  Present  Worth  of  the  i)roiu-ietor.  (Sumnuiry;  sec 
also  130,  page  33.)  When  the  liabilities  exceed  the  resources,  what  is  the  difference  called?  (See  137, 
l)age  33.) 

Page  35. — ''»-'*' How  often,  usually,  and  for  what  ])urpose,  are  the  accounts  showing  losses  and 
gains  c1os<m1  in  the  Ledger?  "*  When  and  for  what  i)ur})ose  are  all  of  the  accounts  in  the  Ix:'(lger 
closed?  "MVhat  new  account  is  to  be  oj)ened?  '**  In  Avhat  order  are  the  accounts  to  be  closed? 
'"Ex})lain  closing  accounts  having  resource  inventories.  '**  Having  lial)ility  inventories.  '"Accounts 
showing  gains,  having  no  inventories.  '*^  Accounts  showing  losses,  having  no  inventories.  '*'  Accounts 
showing  resources.     '"  Accounts  showing  liabilities. 

Page  30. — '•'"How  is  the  Loss  and  Gain  account  to  be  closed?  How  in  case  of  a  partnership? 
'"How  is  the  Proi)rietor's  account  to  be  closed?  '"In  ruling,  what  kind  of  ink  is  to  be  used? 
'**■'"  When  the  space  assigned  to  an  account  has  been  filled,  how  is  the  account  transferred?  "*  What 
do  red  ink  entries  in  the  Ledger  indicate? 

Page  37. — '"''"After  the  Ledger  has  been  closed,  what  is  shown  by  the  balances  that  have  been 
carried  down  below  the  rulings  of  the  various  accounts? 

Page  40. — '*'-'*°  In  closing  the  accounts,  why  has  the  erpuility  of  the  Tjedger  not  been  disturbed-? 
i«-i«3  ji(j^  (\q  yon  prove  the  closed  Ledger  to  l)e  in  balance? 

Page  41.—'*^  What  is  a  Draft?  '"'*«  What  are  the  parties  called  ?  '"  What  is  the  advantage  of  the 
draft  ?  '^''-'*'  How  drawn  with  reference  to  time  ?  '"  Eor  what  are  Sight  Drafts  ])r('si>nted  to  the 
Drawee?  '"Time  Drafts?  "*-'"  What  is  meant  by  Accei)tance,  and  how  made?  "*  When  is  it  not 
necessary  to  date  the  accei)tance?  '"  When  does  the  Drawee  become  legally  resimnsible  to  the  Pavee? 
'"'"'How  may  a  draft  be  drawn  so  that  one  of  the  ])arties  shall  sustain  a  double  relation  to  it? 
J80-18I  Explain  the  use  of  Bank  Drafts?  '"Give  Drawer's  entry  when  he  draws  a  draft  and  remits  it  to 
Payee  on  account.     '*'''  When  lie  disposes  of  it  for  cash,  less  discount. 

Page  42. — '***  (Jive  Drawee's  entrj'  when  he  acce])ts  a  draft  drawn  on  him.  '"*  When  he  pays  sight 
draft  on  him  in  cash.  '**  When  he  prepays  draft,  less  discount,  instead  (»f  accepting  it.  '"When  he 
pays  his  acceptance  at  maturity.  '**  Give  Payee's  entry  when  he  receives  time  draft  from  Drawer  on 
account.     "*  When  Drawee  pre])ays  draft,  less  discount,  instead  of  accei>ting  it.     ""  When  he  buys  draft 

'•'■"*  Give  general  rule  for  journalizing  drafts  when  drawn  on  account. 


for  cash,  less  discount 


THEORETICAL    AND    PRACTICAL    BOOKKEEPING. 
Note. — Before  proceeding  with  the  mouth  of  July,  study  carefully  the  following  exi)lanalious  and  examples. 


65 


SHIPMENTS. 


Dr. 


Cr. 


'"  Shipment  is  credited  at  the  time  of  receiving 
an  account  sales,  for  the  net  proceeds. 


'"Shipment  is  debited  at  the  time  the  property 
is  8hi})ped,  for  its  estinuited  value  (usually  its  cost), 
and  for  all  expenses. 

"*  When  property  is  shipped  to  be  sold  on  commission,  the  person  who  ships  it  opens  an  av'^count 
upon  his  books  with  "Shii)ment,"  to  reju'esent  the  ])roi)erty  which  has  i)assed  from  his  possession,  but 
not  from  his  ownershijj.  "*  To  distinguish  different  shipments,  the  name  of  the  jdace  or  party  is 
generally  used  with  the  number  of  the  shii)ment,  thus:  ** Shipment  to  Detroit,  No.  1,"  "Shipment 
to  Brown  &  Co.,  Baltimore,  No.  3,"  etc.  '"The  i)erson  who  shii)s  the  property  is  called  the  ''Con- 
signor." '**  After  the  })roi)erty  has  been  disposed  of,  a  statement  showing  the  sales  and  all  the  charges 
is  rendered  to  the  Consignor.  Such  a  statement  is  called  an  ''Account  Sales."  "*  The  difference 
between  the  sales  and  all  the  charges  is  called  the  "Net  Proceeds."  **  After  the  Shipment  has  been 
credited  with  the  net  })r()ceeds,  it  will  show  either  a  gain  or  a  loss.  *"'  If  a  statement  of  the  business 
were  to  be  made  before  receiving  an  account  sales,  the  value  of  the  shipment  would  be  treated  as  a 
resource  inventory. 

CONSIGNMENTS. 


Dr. 

*"'  Consignment  is  debited  for  all  charges  ])aid 
when  the  i)roperty  is  received,  and  also  for  all 
subsequent  charges,  and  for  the  net  j)roceeds  at 
the  time  of  rendering  the  account  sales. 


Cr. 


90S 


Consignment  is  credited  for  all  sjiles  of  projv 
erty  belonging  to  it. 


*"  When  property  is  received  to  be  sold  on  commission,  the  party  receiving  it  opens  an  account 
upon  his  books  with  "  Consignment,"  to  rei)rcsent  the  property  which  has  come  into  his  possessioriy 
but  not  his  oivnersJiip.  *"*  To  distinguish  different  consignments,  the  name  of  the  Consignor  is  gener- 
ally used  and  the  number  of  the  consignment,  thus:  "J.  D.  Winslow's  Consignment  No.  2,"  etc. 
***  The  l)arty  who  receives  the  property  is  called  the  "  Consignee."  *"  After  the  closing  entry  has  be^n 
made,  debiting  the  C(msignment  for  the  final  charges  and  net  proceeds,  the  consignment  will  balance. 
'^  If  a  statement  of  the  business  WTre  to  be  made  before  closing  the  consignment,  aiul  the  charges 
u])on  it  to  the  time  of  the  statement  exceeded  the  sales,  the  difference  would  be  a  resource.  ^  It  the 
sales  exceeded  the  charges,  the  difference  would  be  a  liability. 


EXAMPLE    No.  42. 


DAY   BOOK    RECORD. 


Shij)])ed  Wood  &  Martin, 
Palmyra,  to  be  sold  on 
our  account  and  risk, 
2000  bu.R.  Wheat,  @  1.25, 
Paid  insurance  in  cash. 


ITEMS. 

TOTAIi. 

2500 

G 

25 

2500 

25 

JOURNAL    EXTRY    FOR    SAME. 

PR. 


CR. 


Ship't  to  AV.  &  M., Palmyra, 
No.  1, 

To  Mdse. 
Cash, 


2500 


25 


2500 
0 


25 


Shipment  is  debited  for  the  value  of  the  i)roperty  and  also  for  the  exj)euse  of  insuring  same. 
(See  103,  page  55.) 


EXAMPLE    No.  43. 


DAY    BOOK    RECORD. 


•TOURXAL   EXTRY    FOR    SAVE 


Rec'd  an  account  sales  of 
the  8hi})ment  nuuleWood 
&  Martin. 

Our  net  proceeds  remitted 
in  cash. 


2850 

1 

Cash, 

To   Ship't   to   W.   &   M., 
Palmvra,  No.  1, 


2850 


2850 


Shipment  is  credited  for  the  net  i)roceeds  (see  104,  page  55).     In  this  case  Shipment  shows  a  gain, 
the  net  i)roeeed8  being  greater  than  the  cost  (see  200,  page  55). 


•t 


mrmmmmmmmmgm 


56 


THEOKETICAL    AND    PRACTICAL    BOOK  KEEPING 

EXAMPLE    No    44 


DAY   BOOK    RECORD. 


ITKMS. 


TOTAL. 


Siiipix^dJ.  D.Welch,  Now 
N'ornon,  to  bo  sold  on 
oiii  acrount  and  risk, 
r)()(.  UhU.  Aj  |)los,  @  2.50, 
Paid  Iroight  in  cash, 


1250 
50 


I;K)0 


JOURNAL   ENTRY   FOR   SAME. 

. DR. 


Ship't  t.)  J    1).  W.,  New 
\  onion.  No.  1, 

To  Mdse. 
Cash, 


1300 


CR. 


1250 
50 


THEORETICAL    AUD    PRACTICAL    BOOK-KEEPING. 


EXAMPLE    No.  49. 


DAY  BOOK   RECORD. 


ITEMS. 


TOTATi. 


JOURNAL   ENTRY   FOR   SAME. 

DR. 


Rec'd  from  II.  G.  Lvman, 
Ovid,  to  be  sold  on  his 
account  and  risk, 
1000  bu.  S.  AVhoat, 
Paid  freight  in  cash. 


1 

50 

II.   G.   Lvman's   Consi<m- 


ment  Ko.  1, 


To  Cash, 


50 


57 


m. 


50 


f    I 


EXAMPLE    No.  45. 


DAY   BOOK    RECORa 


JOURNAL   ENTRY   FOR   SAME. 


Hoc'd  an  account  sales  of 
the  shi})nient  made  J. 
D.  Welch, 

Our  not  jiroceeds  credited. 


1225 


J.  I).  Welch, 

ToShip'ttoJ.  D.W.,Now 
Vernon,  No.  1, 


1225 


1225 


In  this  case   the  Shipment  shows  a  loss,  the  net  i)roceeds  being  less  than  ihe  cost      (See  '>00 
l)age  55.)  v        ^     . 


EXAMPLE    No.  46. 


DAY   BOOK    RECORD. 


JOURNAL   ENTRY   FOR  SAME. 


Ii(>c'd  from  Church  &  Co.. 
Toledo,  to  be  sold  on 
their  account  and  risk, 

5000  bu.  W.  Oats. 

Paid  freight  in  cash, 


200 


Church  &  Co.'s  Ccmsign- 
nu'iit  J^'o.  1, 

To  Cash, 


2(M) 


200 


Consignment  is  debited  for  the  charges  paid  on  the  i.roi)ertv  at  the  time  it  is  received      (See  202 
page  55.) 


EXAMPLE    No.   50 


DAY   BOOK   RECORD. 


JOURNAL    ENTRY    FOR   SAME. 


Sold  Boyd  &  Son,  on  «(»,  at 
30  days,  from  Lyman's 
Consignment  No.  1, 

500  bu.  S.  Wheat,  @  1.40, 


i 

700 

Boyd  &  Son, 

To  Lyman's  Consignment 
No.  1, 


TOO 


EXAMPLE    No.  51. 


DAY   BOOK   RECORD. 


JOURNAL   ENTRY    FOR    SAME. 


Paid  cartage,  in  cash,  on 
500  bu.  Wheat,  sold  Boyd 
&  Son,  from  Lyman's 
Con.  No.  1, 


• 

10 

Lyman's  Consignment  No. 


1, 


To  Cash, 


10 


EXAMPLE    No.  52. 


DAY   BOOK   RECORD. 


JOURNAL   ENTRY   FOR   SAME. 


Sold  G.  E.  Senev,  on  his 
note  at  30  days,  from 
Lvman's  Con.  No.  1, 

300  bu.  S.  Wheat,  @  1.45, 


i 

1 
435 

Bills  Rec'v, 

To  Lvman's  Consiffiiment 


No.  1, 


700 


10 


435 

435 

i 

DAY    BOOK    RECORD. 


Sold  E.  B.  Fryo,  for  cash, 
from  Church  &  Co.'s 
Consignment  No.  1, 

5000  bu.  Oats,  @  42c., 


EXAMPLE    No.  47. 


2100 


JOURNAL   ENTRY    FOR   SAME. 


Cash, 

To  Church  &  Co.'s  Con. 
No.  1, 


2100 


Consignment  is  credited  for  all  sales  made  from  it.     (See  203,  page  55.) 


2100 


DAY   BOOK    RECORD. 


EXAMPLE    No.  53. 


Re-shipped  the  200  bu. 
Wheat  unsold  of  Ly- 
man's Con.  No.  1,  per 
his  instructions,  to  E. 
B.  Phelps,  Fairport. 

Paid  cartage  on  same  in 
cash. 


JOURNAL   ENTRY   FOR   SAME. 


• 

3 

50 

Lvman's  Consignment  No. 


1, 


To  Cash, 


3 


50 


50 


m 
^ 


EXAMPLE    No.  48. 


DAY   BOOK    RECORD. 


JOURNAL   ENTRY   FOR   SAME. 


Closed    Church    &    Co.'s 
Con.    No.    1,    and    ren- 
dered an  account  sales. 
Storage,  at  ^c.  })or  bu., 
Commission,  2  ^  on  sales. 
Church  &  Co.'s  net  j)ro- 
coeds  remitted  in  cash. 


25 
42 

1833 


1000 


Cliurch  &  Co.'s  Consign- 
ment No.  1, 

To  Storage, 
Commission, 
Cash, 


1900 


25 
42 

1833 


Consignment  is  debited  at  the  time  of  rendering  the  account  sales,  for  tlie  charges  and  the  net 
proceeds  (see  202,  page  55).  The  net  i)roceed8  of  the  above  consignment  are  found  bv  deducting  all 
charges  from  the  sales,  as  follows:  (Ex.  No.  40)  Freight,  200;  (Ex.  No.  48)  Storage,  2:y;  Commission, 
42;  Total  charges,  207.  Total  sales  (Ex.  No.  47),  2100;  leaves  the  Net  Proceeds,  1833  (see  199,  page 
55).  The  above  consignment  will  balance,  because  in  Ex.  No.  H)  it  is  debited  200,  in  Ex.  No.  48  1900, 
and  in  Ex.  No.  47  it  is  credited  2100  (see  207,  i)age  55). 


DAY   BOOK   RECORD. 


EXAMPLE    No.  54. 


JOURNAL   ENTRY    FOR    SAME. 


Closed  Lyman's  Consign- 
ment No.   1,  and   ren- 
dered an  account  sales. 
Storage,  at  Ic.  i)er  bu.. 
Commission,  2  ^  on  sales, 
H.  G.   Lyman's  net   jiro- 
ceeds     placed     to     his 
credit. 


10 

22 

70 

1038 

80 

1071 

50 

Lvman's  Consignment  No. 


1, 


To  Storage, 
Commission, 
II.  G.  Lyman, 


1071 


50 


10 

22 

1038 


70 

80 


The  net  proceeds  of  the  above  consignment  are  found  bv  deducting  all  of  the  charges  from  the 
sales,  as  follows:  (Ex.  No.  49)  Freight,  50;  (Ex.  No.  51)  Cartage,  10;  (Ex.  No.  53)  Cartage,  3.50; 
(Ex.  No.  54)  Storage,  10;  Commission,  22.70;  total  charges,  90.20.  Sales,  (Ex.  No.  50)  700;  (Ex.  No. 
52)  435;  total  sales,  1135.     Leaves  the  Net  Proceeds,  1038.80. 

Note.— In  the  Commission  business,  a  book  called  the  Sales  book  is  usually  kept,  in  which  all  entries  relating  t3 
Consigiinu'iits  are  made  and  posted  directly  to  the  Ledger.  The  Sales  Book  is  not  to  be  used  in  the  business  of  the  two 
foUuwiu^  months,  but  will  be  explained  and  illustrated  hereafter. 


i: 


■f  I 


58 


THEORETICAL    ATfD    PRACTICAL    BOOK-KKKPING. 


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TUEOKETICAL    AND    PRACTICAL    BOOK-KEEPING. 


59 


Ex.  44,  p. 


Ex.  49,  p. 
57. 


Ex.  53,  p. 


JULY  10,  188-. 
Paid  Dodge  &  Hardy's  Bill  for  Office  Books  and  Stationery  in  cash,  31.25. 

11. 

Shipped  Dow  &  Todd,  Lodi,  to  he  sold  on  my  account  and  risk,  250  hu.  W.  Oats,  @  45o.     Paid 


cartage  in  cash,  2.00. 


12 


Ex.  45,  p. 

56. 


aoe,  p.  55 

305,  p.  55. 


308,  p.  55. 


Ex.  54,  p. 
67. 


1«3,  p.  55. 

196,  p.  .55. 


303,  p.  55. 


23,  pa.  6. 

«U,  pa.  7. 


302,  p.  55. 


193,  p.  55. 


Bo't  of  Wm.  B.  Hoyt,  on  my  note  at  10  days,  with  interest,  3500  hu.  Barley,  @  90c. 

13. 

Rec'd  from  W.  J.  Corning,  Waterloo,  to  bo  sold  on  his  account  and  risk,  1000  hu.  White  Wheat. 

Paid  freight  in  cash,  G5.00. 

15. 

Sold  N.  C.  Iluhhard,  on  his  note  at  5  days,  from  Coming's  Con.  No.  1,  400  hu.  W.  Wheat,  @ 

1.40. 

16. 
Paid  J.  C.  King  cash  on  <^,  300.00. 

»» 

Hec'd  from  Dow  &  Todd,  Lodi,  an  Account  Sales  of  the  shipment  made  them  11th  inst.     Net 
proceeds  to  my  credit,  102. 75. 

17. 

Sold  Jno.  D.  Mas^fpllichfield,  on  «^  250  hu.  W.  Oats,  @  50c.;  1500  hu.  Barley,  @  1.00. 

18. 
Rec'd  from  J.  B.  Clark,  Clyde  (2d  consignment),  to  be  sold  on  his  account  and  risk,  300  bu. 
Red  Wheat.     Paid  Freight  in  cash,  18.00. 

19. 

Sold  Roh't  G.  I^idlaw,  on  %  at  10  days,  from  Coming's  Con.  No.  1,  COO  hu.  W.  Wheat,  @. 
1.42. 


>» 


Closed  Coming's  Con.  No.  1,  and  rendered  an  Account  Sales.     Storage,  at  Ic.  per  hu.,  10.00; 
Commission,  2  ^  on  sales,  28.24.      W.  J.   Coming's  net  proceeds  jdaced  to  his  credit, 

1308. 7G. 

21. 

Shi])ped  G.  H.  Wheeler,  Bristol  (2d  shipment),  to  he  sold  on  my  account  and  risk,  500  hu.  W. 
Oats,  @  45c.;  500  ])u.  Barley,  @  90c. 

22. 

Sold  for  cash,  from  Clark's  Con.  No.  2,  100  hu.  R.  Wheat,  @  1.35. 

23. 
N.  C.  Iluhhard  paid  his  note  of  15th  inst.  in  cash.    Remitted  the  cash  to  W.  J.  Corning  on  <5fe. 

24. 
Bo't  of  C.  D.  Mathews,  on  my  note  at  25  days,  with  interest,  3000  hu.  Mixed  Oats,  @  40c. 

Rec'd  from  Morey  &  Co.,  Richmond,  to  he  sold  on  their  account  and  risk,  800  hu.  Corn.     Paid 

Freight  in  cash,  00.00. 

25. 
Paid  my  note  of  12th  inst.  in  cash. 

') 

Sliii)])ed  M.  &  D.  Fisher,  Easton,  to  he  sold  on  my  account  and  risk,  2000  hu.  Mixed  Oats,  @ 
40c.;  1500  hu.  Barley,  @  90c.     Paid  Insurance  in  cash,  10.75. 

26. 

Rec'd  from  G.  H.  Wheeler,  Bristol,  an  Account  Sales  of  the  shi})ment  made  him  21st  inst. 
My  net  proceeds  remitted  in  cash,  798.99. 

Rec'd  cash  of  Dow  &  Todd,  in  full  of  ^fc. 


# 


I 


60 


184,  p.  43. 


59.  pa.  7. 
'M,  pa.  6. 


THKORETICAL   AND    PRACTICAL    BOOK-KEEPING. 

27. 

Afi'optcil  W.  J.  Corning's  ilruft  on  nie  at  15  days'  sight,  to  apply  on  ^,  500.00. 

29. 
Sold  fi)r  cash,  from  Clark's  Con.  No.  2,  100  bu.  R.  Wheat,  ^  1.37. 

30. 

T{(M'M  of  11.  (1.  Tiaidhnv,  his  note  at  20  days,  with  interest,  to  lialanee  ^. 

31. 
Paid  lient  of  Warehouse  for  the  month,  50.00,  and  Laborer's  serviees  in  full,  25.00,  in  cash. 


INVENTORIES,  JULY  31,  188-. 

M DSE.— 1000  bu.  Barley,  (??>  OOe. ;  1000  bu.  :M.  Oats,  ®  40c.     Total, 1300  00 

SHIPMENT  to  M.  &  D.  Fisher,  East  on.  No.  1, 21G0  75 

Note. — Journalize  and  post.  Open  a  separate  account  for  each  Shipment  and  for  mM  Consignment.  Give  Cash 
account  one  page  space;  Mdse.  one-lialf  of  a  page;  Bills  Payable,  Bills  Receivable.  Storage  and  Connnission,  one-third  of 
a  page  each;  all  others  one  fourth  of  a  page  each.  After  j)osling  the  month,  make  a  Balance  Sheet,  and  cIohc  onljf  the 
accounts  in  the  Ledger  showing  losses  and  gains. 

In  the  Balance  Sheet  given  below  only  a  few  of  the  extensions  are  made,  the  student  being  require*!  to  complete  the 
extensions  and  prove  his  results.  They  should  agree  with  the  Sununary  given  Ih'Iow.  After  you  have  }K*rformed  this 
work,  continue  the  sjime  business  through  the  month  of  August. 

TRIAL  BALANCE  AND  BALANCE  SHEET,  JULY  31,  188-. 


I,,  r. 

I>U.  FOOTI.XO. 

1 

OR.  rOOTING. 

UR80URCKS. 

LIABILITIES. 

UMsn. 

1 

GAINS. 

Student, 

6000 

Cash, 

8408 

74 

5353 

73 

Mdse. 

Ship't  to  G.  H.  AV.,  Brist(d, 

No.  1, 

455 

485 

30 

Storage, 

15 

15 

Commission, 

43 

24 

43 

24 

J.  C.  King, 

Expense, 

100 

25 

Ship't  to  D.  &  T.,  Lodi,  No.  1, 

114 

50 

102 

75 

11 

75 

Bills  Payable, 

Bills  Receivable, 

J.  D.  Mason, 

Clark's  Con.  No.  2, 

18 

07.) 

254 

W.  J.  Corning, 

Shijvt  to  G.  11.  W.,  Bristol, 

No.  2, 

675 

798 

00 

Morey  &  Co.'s  Con.  No.  1, 

GO 

60 

Interest, 

(; 

73 

Ship't  to  M.&  D.F.,  Eastern, 

Inrt. 

No.  1, 

2160 

75 

2160 

75 

SUMMARY. 


♦ 


Total  Gains,  - 
"     Losses, 

Net  Gain, 

Total  Resources, 
**     Liabilities. 

Present  Worth. 


374 

73 

124 

73 

250 

00 

9052 

76 

2802 

76 

6250 

00 

Student's  Investment,    - 
**        Net  Gain,   - 

**        Present  Worth, 


6000  00 
250  00 

6250  00 


i«i,  p.  .v.. 

196.  p.  55. 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


AUGUST    1.   188-. 


61 


302,  p.  55. 


Ex.  53,  p. 
57. 


Ex.  48.  p. 
56. 


23,  pa.  0. 
JJ4,  pa.  6. 
40,  pa.  6. 


Shipi)ed  Dow  &  Todd,  Lodi  (2d  shipment),  to  be  sold  on  my  account  and  ritik,  1000  bu.  Barley, 
@  90c.     Paid  cartage  and  insurance  in  cash,  25.00. 

3. 

Bo't  for  cash,  3000  bu.  White  Oats,  @  52c. 

4. 
Rec'd  from  J.  B.  Clark,  Clyde  (3d  consignment),  to  be  sold  on  his  account  and  risk,  400  bu. 
Beans.     Paid  freight  in  cash,  20.00, 

5. 

Sold  Niles  &  Kinnie,  800  bu.  Corn  (Morey  &  Co.'s  Con.  No.  1),  @  65c.     Rec'd  cash,  120.00. 
Balance  on  (^. 

Closed  Morey  &  Co.'s  Con.  No.  1,  and  rendered  an  Account  Sales.     Storage,  8.00;  Commission, 
2  ^  on  sales,  10.40.     Morey  &  Co.'s  net  proceeds  placed  to  their  credit. 

6. 

Bo't  of  O.  B.  Delano,  on  my  note  at  60  days,  2500  bu.  Barley,  @  90c. 

Rec'd  from  M.  &  D.  Fisher,  Easton,  an  Account  Sales  of  shipment  made  them  July  25th.  Net 
proceeds  remitted  in  cash,  2258.25. 

8. 
Drew  a  sight  draft  on  J.  D.  Mason,  Richfield,  600.00,  and  paid  it  to  J.  C.  King,  in  full  <;f  <^. 

»> 

Rec'd  from  Benj.  Beebe,  Northport,  to  be  sold  on  his  account  and  risk,  1000  bu.  Corn.  (Mem- 
orandum only.) 

Sold  R.  G.  Laidlaw,  on  ^,  at  15  days,  from  Clark's  Con.  No.  3,  100  bu.  Beans,  @  3.25. 

12. 

Shipped  to  E.  B.  Worden,  New  London,  to  be  sold  on  my  account  and  risk,  1000  bu.  Mixed 
Oats,  @  40c.     Paid  cartage  and  insurance  in  cash,  17.50. 

13. 

Re-shipped,  as  per  instructions  received  from  J.  B.  Clark,  to  be  sold  on  his  account  and  risk, 

the  100  bu.  R.  Wheat  belonging  to  Clark's  Con.  No.  2,  to  R.  D.  White,  Smithport.     Paid 

Cartage  in  cash,  2.00. 

14. 

Closed  J.  B.  Clark's  Con.  No.  2,  and  rendered  an  Account  Sales.  Storage,  6.00;  Commission, 
2  ^  on  sales.  Clark's  net  proceeds  remitted  to  him  in  cash.  (See  also  explanation  under 
Ex.  54.) 


Paid  my  acceptance  of  July  27th  in  cash. 


» 


16. 


Bo't  of  D.  Woods,  2000  bu.  Mixed  Oats,  @  48c.     Paid  him  cash,  460.00,  and  gave  him  my 
note  at  10  days,  with  interest,  for  balance. 

17. 
Sold  for  cash,  from  Beebe's  Con.  No.  1,  300  bu.  Corn,  @  68c. 


M 


Rec'd  of  Niles  &  Kinnie,  their  note  at  20  days,  with  interest,  to  balance  <^,  400.00.     Remitt^ 
the  note  to  Morey  &  Co.,  together  with  cash  to  balance  their  ^. 

18. 

Sold  Milton  Forbes,  on  his  note  at  30  days,  500  bu.  Mixed  Oats,  0  53e. ;  1000  bu.  White  Oata, 
@  56c. 

Rec'd  from  W.  J.  Corning,  Waterloo  (2d  consignment),  to  be  sold  on  his  account  and  lisk, 
3500  bu.  W^hite  Wheat.     Paid  Freight  in  cash,  280.00. 


<*» 


I 

I 


i 


62 


303,  p.  55 


20B,  p.  55. 


THEORETICAL    AND    PRACTICAL    BOuK  KEEPIMO. 

19. 

Sc.Ul  Jno.  1).  Alusoji,  ,.n  «/-,  from  ('lark's  Con.  No.  3,  300  bu.  Beans,  @  3.35. 


*» 


OU»se(l  (Mark's  Con.  No.  3,  and  ivndorcd  an  Account  Sales.     Storage,  8.00;  Commission,  2  ^ 
on  sales.     J.  B.  Clark's  net  ])roceeds  ]daced  to  liis  credit. 


21, 


Paid  my  note  of  July  24,  and  iiitercst,  due  to-day,  in  cash. 


» 


aOB,  p.  55. 


Dow  &  Todd,  LiMli,  por  my  instructions,  have  re-shijiped  to  Wells  Bro's,  Carlisle,  to  be  sold 
my  account  and  risk,  1000  bu.  Barley,  shii)i)ed  tiiem  1st  inst. 


on 


22. 


Sold  for  cash,  from  Coming's  Con.  No.  2,  150  bu.  White  Wheat,  Q/i  1.45. 


n 


Rec'd  cash  of  R.  0.  Laidlaw,  for  his  note  of  July  30th  aiul  interest. 


23. 


Sold  for  cash,  from  Beebe's  Con.  No.  1,  700  bu.  Corn,  @  G8c. 


*t 


Closed  Beebe's  Con.  No.  1,  and  rendered  an  Account  Sales.     Storage,  at  Ic.  per  bu.;  Commis- 
sion, at  2  ;s^  on  sales.     Benj.  Beebe's  net  i)roceeds  remitted  in  cash. 


194,  p.  55. 


24. 


Rcc'd  cash  of  R.  G.  Laidlaw,  in  full  of  «>,  325.00,  and  remitted  same  to  J.  B.  Clark,  on  % 


» 


Rec'd  from  E.  h.  Worden,  New  London,  an  Account  Sales  of  shipment  made  him   12th   inst. 
My  net  proceeds  remitted  in  cash,  485.80. 


25. 


Shipj)ed  to  Frank  Odell,  Lisbon,  to  l)e  sold  on  my  account  and  risk,  1500  bu.  Barley,  @  90c. 
Paid  cartage  and  insurance  in  cash,  18.38. 


»> 


Rec'd  cash  of  Jno.  I).  Mason,  on  «y(-,  1025.00. 


26. 


im,  i>  55. 


Rec'd  from  Morey  &  Co.,  Riehinond  (2d  consignment),  to  be  sold  on  their  account  and  risk, 
1000  bu.  Corn.      Paid  Freight  in  cash,  75.00. 


Paid  W.  J.  ('orning,  cash  to  balance  ^. 


27. 


Shippe<l  to  M.  &  1).  Fisher,  Easton  (2d  shipment),  to  be  sold  on  my  account  and  risk,  1000  bu. 
31,  Oats,  @  48c.      Paid  cartage  in  cash,  5.00. 


f> 


Sold.J   D.  Mason,  1000  ))u.  White  Oats,  @  55c.;  500  bu.  Barley,  (a)  1.00.     Rec'd  cash,  250.00, 
and  his  note  at  20  days  for  balance. 

28. 

Milt«m    Forl)es  prepaid   his  note  of   ISth  inst.     Face  of  note,  825.00;  discount  to  maturity. 
Rec'd  cash  for  the  proceeds. 

29. 

Faid  my  note  of  l«th  inst.  and  interest,  due  to-dav,  in  cash. 


194,  p.  ^'^. 
afci,  p.  55. 


23,  pa.  6. 
40,  pa.  6. 
194,  p.  55. 


THEOREITCAL   AND    PRACTICAL    BOOK-KEEPING. 


29. 


63 


Rec'd  advice  from  M.  &  P.  Fisher,  Easton,  that  the  1000  bu.  M.  Oats  shipped  them  27th  inst. 
were  destroyed  by  fire  while  in  transit.     No  insurance. 

Sold  R.  G.  Laidlaw,  on  <^,  from  Morey  &  Co.'s  Con.  No.  2,  600  bu.  Corn,  @  70c. 

30. 
Rec'd  from  Wells  Bro's,  Carlisle,  an  Account  Sales  of  the  shipment  made  them  on  our  account 
by  Dow  &  Todd.     Our  net  proceeds,  894.25,  remitted  by  their  sight  draft  on  J.  B.  Clark, 
which  we  have  paid  to  Clark,  together  with  cash  to  balance  his  ^. 


>» 


Rec'd  from  Grant  &  Son,  Salem,  to  be  sold  on  their  account  and  risk,  500  bu.  R.  Wheat.     Paid 

Freight  in  cash,  30.00.  • 

31. 

Rec'd  cash  of  Jno.  D.  Mason,  in  full  of  <^. 

Sold  for  cash,  from  Grant  &  Son's  Con.  No.  1,  200  bu.  R.  Wheat,  @  1.35. 


» 


Paid  Rent  of  Warehouse  for  month  in  cash,  50.00. 


INVENTORIES,  AUGUST  31.  188-. 

MDSE.— 500   bu.  Mixed    Oats,  @    48c.;    1000   bu.  White    Oats,  @    52c.;    500   bu.  Barley, 

^90c.     Total, -.- - 1^10  00 

SHIPMENT  to  Lisbon  No.  1,  at  cost, -- --     1368  38 

Note. — Journalize  and  i><)st.  Give  new  accounts  one-fourth  of  a  page  space.  After  posting  the  month  of  August, 
make  out  a  Balance  Sheet  and  close  the  Ledger.  Bring  down  the  llesources  and  Liabilities,  and  prove  your  work.  If 
correct,  it  will  agree  with  the  following: 


TRIAL  BALANCE  OF  LEDGER  BALANCES,  AUGUST  31,  188-. 


RESOURCES 

Cash, 5050  12 

Mdse.  Inv 1210  00 

Bills  Receivable, 800  00 

Personal  Accounts, 420  00 

Coming's  Con.  No.  2, 62  50 

Ship't  to  Lisbon  No.  1,  Inv.  - 13G8  38 


8911  00 


LIABILITIES. 

Bills  Payable, 2250  00 

Morey  &  Co.  's  Con.  No.  2, 345  00 

Grant  &  Son's  Con.  No.  1, 240  00 

Student's  Investment, 6250  00 

Net  Loss,.-. 174  00 


Present  Worth, _ 6076  00 


8911  00 


QUESTIONS  FOR  REVIEW. 

Page  55. — "^'"^  Give  the  rule  for  journalizing  Shipments.  "*  Explain  the  meaning  of  shipment. 
'**  How  are  the  the  different  shipments  distinguished?  ^"  What  is  the  party  called  who  shijjs  the 
])roperty?  "MVhat  is  meant  by  Account  Sales?  '"By  Net  Proceeds?  '^  What  will  the  Shipment 
account  show  after  it  has  been  credited  with  the  net  proceeds?  *"•  What  before?  ***"***  Give  the  rule 
for  journalizing  Consignments?  ^  Explain  the  meaning  of  Consignment.  **  How  are  the  different 
consignments  distinguished?  ^  What  is  the  party  called  who  receives  the  property?  **"  When  should 
a  Consignment  balance?  **''^  What  would  a  Consignment  show  if  it  were  unclosed  at  the  time  of 
making  a  Balance  Sheet? 


t   :     ! 


\ 


i 

I 


i 


(^4 


THEOKETICAL    AND    PRACTICAL    BOOK-KEEPING. 


THEORETICAL    AND    PRACTICAL    BOOKKEEPING. 


65 


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SEPTEMBER   1,   188-.     (See  Notes  1  and  2  below.) 

Student  and  Wm.  B.  Henderson  form  a  co-partnership  this  day,  under  the  firm  name  of  Student 
&  Co.,  for  tlie  purpose  of  conducting  the  Hardware  Business.  The  partners  are  to  invest  equal 
amounts,  and  share  e(iually  in  gains  and  losses. 

In  consideration  of  extra  services.  Student  is  to  be  paid  by  the  firm  a  salary  of  one  hundred  dollars 
per  month. 

STUDENT'S   INVESTMENT. 

Resources:  Currency  paid  in,  1500;  on  deposit  in  Flower  City  Bank,  1163.73;  Geo.  W.  Banning, 
Brock })oit,  owee  on  account,  85; ). 

Liabilities:  Student's  note  in  favor  of  R.  D.  Jones,  dated  March  16th  last,  at  6  months,  payable  at 
Flower  City  Bank,  with  interest,  500  (enter  this  note  in  Bill  Book  also;  see  page  71).  Interest  accrued 
to  date,  5  mo.  15  days  (see  Note  No.  3,  below). 

WM.  B.  HENDERSON'S   INVESTMENT. 

Resources:  A  note  made  by  M.  R.  Si>ellman,  dated  July  11th  last,  at  60  days,  payable  at  First 
Natioiud  Bank,  with  interest,  800  (enter  also  in  Bill  Book;  see  page  71).  Interest  accrued  to  date,  52 
days  (see  Note  No.  3,  below).     Currency  paid  in,  2193.16. 

2. 
Pay  cash  for  Office  Books,  25.00. 


» 


Buy  of  E.  Corning  &  Co.,  Albany,  on  %  50  kegs  Cut  Nails,  5000  lbs.,  @  3c.  lb.;  20  Blacksmith's 
Drills,  @  6.00  ca. ;  20  doz.  Cast  Steel  Augers,  @  5.50  doz. ;  15  doz.  Plain  Galvanized  Coal  Hods,  % 
12.00  d«z.;  2  doz.  Universal  Clothes  Wringers,  (cb,  60.00  doz. 

3. 

Sell  Barber  &  Swift,  Georgetown,  3  doz.  C.  S.  Augers,  @  8.00  doz.;  5  doz.  P.  G.  Coal  Hods,  @ 
15.00  doz.;  10  kegs  Cut  Nails,  1000  lbs.,  (^  4^c.  Receive  in  payment,  their  note  at  10  days,  with 
interest,  payable  at  Farmers'  Bank,  100.00  (enter  also  in  Bill  Book).     Balance  on  ^. 

n 

Cash  sales  of  Mdse.  for  the  day,  as  per  Cash  Drawer,  30.50.     (See  Note  No.  4,  below.) 

4. 

Sell  L.  B.  Mason,  Batavia,  4  IT.  C.  Wringers,  @  7.00  ea.;  5  Blacksmith's  Drills,  @  8.00  ea.;  20 
kegs  Cut  Nails,  2000  lbs,  @  4fc.  lb.     Receive  in  payment,  cash,  50.00.     Balance  on  ^. 

Note  No.  1. — The  Day  Book,  a.s  a  separate  book,  will  hereafter  be  dispensed  with,  and  the  history  of  the  tmnsaoti(Mis 
written  in  the  Journal,  or  other  book  of  original  entry  (13,  page  5).  In  the  form  shown  on  page  64,  lK)th  del)its  and  credits 
are  entered  at  the  left  side  of  the  page,  the  right  side  being  reserved  for  the  explanations.  The  debits  are  to  l)e  entered 
first.  The  credits  may  be  distinguished  by  having  the  sign  "To "  placed  before  them.  The  explanations  are  to  be  written 
about  one-third  smaller  than  the  journal  entries. 

Note  No.  2. — An  auxiliary  book,  called  the  Bill  Book,  is  to  be  kept,  to  show  the  particulars  regarding  the  Bills 
Payable  and  Bills  Receivable  which  j'ou  issue  and  receive.  The  fonn  shown  on  page  71  is  arranged  for  lK)th  notes  and 
drafts.  The  Drawer  of  a  draft  and  the  Endorser  of  a  note  sustain  substantially  the  stime  relation  to  the  paper;  both  are 
therefore  entered  in  one  column.  The  same  is  true  also  of  the  Drawee  of  a  draft  and  the  Maker  of  a  note.  Three  days 
of  grace  are  always  to  be  added  in  giving  the  maturity  of  paper.  As  soon  as  you  have  made  an  entry  in  the  Journal  for 
a  Bills  Payable  issued  or  Bills  Receivable  received,  turn  at  once  to  the  Bill  Book  and  enter  it  there  also.  When  a  Bill 
has  been  paid,  or  disposed  of  in  any  manner,  state  the  fact  in  the  proper  column  in  the  Bill  Book. 

Note  No.  3.— In  cases  of  this  kind  the  interest  accrued  does  not  represent  a  gain,  but  a  liability.  It  may  be  credited 
to  Interest  account,  however,  since  by  debiting  the  whole  amount  of  interest  to  Interest  account  when  the  note  is  disposed 
of,  the  temporary  fictitious  gain  is  adjusted,  the  difference  showing  the  actual  loss  for  the  time  such  note  was  in  the 
business.  In  case  a  statement  of  the  business  should  be  desired  before  the  note  is  disposed  of,  the  interest  accrued  to  the 
time  of  such  statement  would  be  debited  to  the  Interest  account  as  a  liability  inventory.  If  the  note  were  a  Bills 
Receivable  instead  of  a  Bills  Payable,  the  above  conditions  would  be  reversed. 

Note  No.  4.— Whenever  a  cash  sale  is  made  during  the  day,  the  amount  is  entered  upon  a  slip  of  papt-r.  At  the 
close  of  the  day's  business  these  slips  are  added  together,  and  the  amount  should  agree  with  the  cash  in  the  drawer.  An 
entry  is  then  made  upon  the  books  for  the  whole  amount,  debiting  Cash  and  crediting  Mdse. 


>>»jiW  IE!".. .  i.i«."WW 


66 


THEORETICAL    AND    PliACTlCAL    BOOK-KEEPING. 


THEORETICAL    AND    PRACIICAL    BOOK-KEEPING. 


67 


6. 


"'I 


i 


Buy  of  Hamilton  &>  Mathews,  City,  45  doz.  Brass-rod  Curry  Combs,  @  1.75  doz.;  5  doz.  50-lb. 
Steelyards,  @  8.25  doz.;  (5  doz.  10-iiich  Trowels,  @  8.50  doz.;  40  (Jrindstoncs,  @  1.50  ea.;  12  doz. 
No.  2  Japanued  Boot  Jacks,  @  3.25  doz.;  15  doz.  Carpet  Stretchers,  @  2.25  doz.  Give  them  in  pay- 
ment, your  note  at  15  days,  payable  at  F.  C.  Bank,  with  interest,  100.00  (enter  also  in  Bill  Book);  your 
check  on  F.  C.  Bank,  50.00.     Balance  on  ^. 


Cash  sales,  as  per  Cash  Drawer,  41.35. 


» 


8. 


Sell  Louis  Ernst,  City,  on  his  note  at  30  days,  payable  at  Commercial  Bank,  2  doz.  Steelyards,  @ 
10.00  iloz.;  G  doz.  Boot  Jacks,  No.  2,  @  5.00  doz.;  15  doz.  B.  It.  Curry  Combs,  (^  2.25  doz. 


Deposit  cash  in  Flower  City  Bank,  500.00. 


» 


9. 


Pay  freight  on  goods  from  Albany  in  cash,  19.75.     (Debit  Mdse.) 

10. 
Accept  E.  Corning  &  Co.'s  draft  on  you,  at  5  days'  sight,  favor  themselves,  i)ayable  at  F.  C.  Bank, 


on  <^,  300.00.     (lUl,  page  42,  Und  68,  page  7.) 


12. 


Receive  cash  of  M.  K.  Spellman,  for  his  nole  and  interest,  due  to-day.  (Mark  this  note  in  Bill 
Book  as  i)aid;  see  i)age  71.) 

13. 

Sell  C.  B.  Shafer,  Gasport,  20  kegs  Cut  Nails,  2000  lbs.,  @  4|c.  lb.;  G  U.  C.  Wringers,  @  0.50  ea. ; 
6  Grindstones,  (a),  2.75  ea. ;  2  doz.  Cari)et  Stretchers,  (a)  4.20  doz.  lleceivc  in  payment,  his  check  on 
Flower  City  Bank,  50.00.     Balance  on  % 


Sales  for  cash,  as  per  Cash  Drawer,  85.80. 


f» 


n 


Deposit  in  F.  C.  Bank,  Shafer's  check  rec'd  13th  inst.     Also  deposit  currency,  100.00. 

15 

Draw  a  draft,  at  10  days  from  date,  on  Barber  «&  Swift,  Georgetown,  to  ])alance  «<•,  44.00.     Have 

the  draft  discounted  at  F.  C.  Bank,  and  proceeds  })laced  to  your  credit.     (1 10,  i)age  27;  75,  page  7; 

11)2,  page  42.) 

»> 

Receive  cash  of  Geo.  W.  Banning,  on  «^,  400.00. 

16. 

Barber  &  Swift  pay  their  note  of  3d  inst.,  due  to-day,  as  follows:  Give  a  new  note,  at  30  days, 
payable  at  Farmers'  Bank,  50.00;  and  their  check  on  Farmers'  Bank  to  cover  balance  of  old  note  and 
interest,  and  also  interest  on  the  new  note  to  maturity,  paid  in  advance.  (59,  page  7;  39,  i)age  6;  60, 
page  7;  76,  page  7.) 

Receive  cash  of  L.  B.  Mason,  to  apply  on  <^,  50.00. 

18. 
Sell  E.  N.  Hoaxter,  Lyons,  on  his  acceptance  at  30  days  from  date,  payable  at  Exchange  Bank, 
5  Blacksmith's  drills,  Qt,  8.00  ea.;  8  doz.  1-inch  Augers,  @  7.25  doz.;  5  doz.  P.  i\.  Coal  Hods,  @  15.25 
doz.;  20  doz.  B.  R.  Curry  Combs,  %  2.50  doz.;  3  doz.  J.  Boot  Jacks,  @  5.00  doz. 

n 

Your  acceptance,  due  to-day  at  F.  C.  I^ank,  has  been  charged  to  your  ^.  (See  Note  No.  2, 
page  47.)  ^^ 

Your  note  due  to-day,  with  interest,  has  been  paid  and  charged  to  your  account  at  F.  C.  Bank. 
(See  Bill  Book;  also  67,  page  7;  75,  page  7;  111,  page  27.) 


21. 
Buy  of  Hart,  Bliven  &  Mead,  New  York,  50  doz.  Round  Handle  Bread  Knives,  %  1.00  doz.;  12 
Copying  Presses,  with  wheel,  (^  5.00  ea. ;  50  pairs  Barn  Door  Hangers,  extra  heavy,  @  2.25  pr. ;  10 
doz.  Cow  Bells,  No.  2,  @  8.25  doz.;  6  Ice  Cream  Freezers,  10  qt.,  @  8.00  ea. ;  1500  lbs.  Babbitt  Metal, 
@  12^c.  lb.;  12  doz.  Lemon  Squeezers,  wood,  @  1.50  doz.  Give  them  in  payment,  your  note  at  30 
days,  100. 00;  your  note  at  60  days,  200.00;  both  notes  payable  at  F.  C.  Bank.     Balance  on  ^. 

22. 

Receive  of  C.  B.  Shafer,  Gasport,  his  note  at  45  days,  with  interest,  indorsed  by  W.  G.  Sterritt, 
payable  at  Flower  City  Bank,  to  balance  his  "Jfc,  106.40. 

23. 

Sell  E.  D.  Graves,  Penn  Yan,  20  doz.  R.  H.  Bread  Knives,  (^  1.50  doz.;  25  prs.  extra  heavy  B.  D. 
Hangers,  @  2.75  j)r. ;  2  I.  C.  Freezers,  lO-qt,  @  10.00  ea. ;  100  lbs.  B.  Metal,  @  15c.  lb.;  1^  doz.  Lemon 
Squeezers,  @  3.00  doz.     Receive  in  i)ayment,  his  check  on  First  National  Bank  of  Penn  Yan. 

24. 
Deposit  in  F.  C.  Bank,  Graves'  check  rec'd  yesterday;  also  deposit  currency,  2000.00. 

Your  note  due  to-day,  with  interest,  has  been  charged  to  your  ^  at  F.  C.  Bank.     (See  Bill  Book.) 

26. 
Sell  Ezra  Langworthy,  Marcellus,  for  cash,  25  doz.  R.  H.  Bread  Knives,  @  2, 10  doz. ;    1  Copying 
Press,  8.00;  2  doz.  No.  2  C.  Bells,  @  9.75  doz.;  300  lbs.  B.  Metal,  @  H\c.  lb. 

27. 
E.  N.  Hoaxter  prepays  his  acceptance  of  18th  inst.,  less  discount  to  maturity,  in  cash. 

29. 
Prepay,  by  check  on  F.  C.  Bank,  Hart,  Bliven  &  Mead's  draft  on  you,  at  45  days'  sight,  258.50, 
less  discount.     (191,  page  42;  76,  page  7;  111,  page  27.) 

Receive  cash  of  L.  B.  Mason,  to  balance  his  ^,  63.00. 

30. 
Pay  Clerks'  Salaries  in  full  to  date,  in  cash,  75.00. 

Give  Student  credit  for  Salary,  as  provided  in  partnership  agreement  Sept.  1. 

INVENTORIES,   SEPTEMBER    30.  188-. 

RESOURCE. 
Mdse. — Goods  in  stock,  as  per  Inventory  Book, 712  79 

LIABILITY. 
Expense. — Rent  unpaid  for  month  of  September, _ lOO  00 

INSTRUCTIONS  FOR  POSTING  SEPTEMBER. 

First  open  an  account  for  Student,  and  another  for  Henderson,  giving  each  one-half  of  a  page 
space.  Give  Cash,  Mdse.  and  Bank,  one  page  each;  Bills  Payable,  Bills  Receivable,  Expense,  and 
Interest  and  Discount,  one-half  page  each.  (Interest  and  Discount  may  be  posted  as  one  account ;  write 
the  heading  in  the  Ledger  "  Interest  &  Discount.")  Give  all  other  accounts  one-third  of  a  page  each. 
In  opening  personal  accounts,  enter  the  residence  in  the  Ledger  after  the  name,  but  written  in  a 
smaller  hand. 

In  posting,  hereafter,  the  explanations  are  to  be  entered  in  the  Ledger  as  explained  and  illustrated 
on  next  page. 


,1 


68 


THEOKLTICAL    AND    PKACTICAL    BOOKKEEPING. 


THEORETICAL    AND    PBACTICAL    BOOKKEEPING. 


69 


»> 


!   i 


Mi 


SEPTEMBER  1. 

In  posting  the  item  of  1500  to  the  Dr.  side  of  Casli  account,  ssiy,  in  tljc  explanation  column,  *'  To 
Sundries."  (When  the  opjmsite  side  of  the  journal  entry  consists  of  more  than  one  item,  the  word 
*'  Sundries"  is  used  in  tlie  Ledger  instead  of  entering  the  items.  Sec  Ledger  accounts  l)elow.)  Enter 
the  same  explanation  in  posting  to  Dr.  side  of  F.  C.  Bank  and  lianning's  accounts.  In  posting  the 
item  of  500  to  Cr.  ^;de  of  Hills  Payable  account,  say,  in  the  exj)lanation  column,  "By  Sundries." 
Enter  the  same  exi»lanation  in  posting  to  Interest  and  Student's  accounts. 

SEPTEMBER  1,   Second  Entry. 

On  Dr.  side  of  Bills  Receivable  say,  in  the  exj)lanation  column,  "To  Wm.  B.  Henderson."  Enter 
same  explamition  in  i)osting  to  Interest  and  Cash  accounts.  On  Cr.  side  of  Henderson's  account  say,  in 
explanation  column,  "  By  Sundries.'* 

SEPTEMBER  2. 

On  Dr.  side  of  Expense  account  say,  "To  Cash,"  and  on  Cr.  side  of  Cash  account  say,  "By 
Expense." 

SEPTEMBER  2.   Second  Entry. 

On  Dr.  side  of  Mdse.  account  say,  "To  E.  Corning  &  Co."     On  Cr.  side  of  E.  Corning  &  Co.'s 
account  say,  "  By  Mdse." 

SEPTEMBER  3. 

On  Dr.  side  of  Bills  Receivable  account  say,  "To  Mdse."  On  Dr.  side  of  Barber  &  Swift's  account 
say,  "  To  Mdse.";  and  on  Cr.  side  of  Mdse.  account  say,  "  By  Sundries." 


STUDENT. 

188 
Sept. 

1 

By  Sundries, 

1 

3000 

WM.  B.  HENDERSON. 

188 
Sept. 

1 

By  Sundries, 

-• 

3000 

CASH. 

188 
Sept. 

it 

1 
1 

To  Sundries, 
"    Henderson, 

1 
1 

1500 
5>103 

16 

188 
Sei)t. 

1 

1 

2 

By  Expense, 

1 

25 

GEO.  W.  BANNING 

.    E 

IROCKPORT. 

188 
Sept. 

1 

To  Sundries, 

1 

850 

1 

E.  CORNING  &  CO..  ALBANY. 

188 
Sept. 

2 

By  Mdse. 

1 

680 

Mr.  Henderson  is  to  sell  his  interest  in  the  business  to  Student,  and  retire  from  the  firm  October 
Ist.  After  you  have  completed  the  posting,  therefore,  you  may  make  Balance  Sheet  and  close  only 
those  accounts  showing  gains  and  losses  and  the  partner's  accounts.  The  work  is  to  be  performed 
substantially  in  accordance  with  the  instructions  for  April,  on  page  48.  In  closing  the  Expense 
account,  see  146,  page  35. 

A  few  of  the  results  shown  by  your  Balance  Sheet  are  appended:  Cash  on  hand,  2923.53;  Balance 
in  bank,  2773.88;  Difference  in  Interest  and  Discount  account,  1.11;  Mdse.  bought,  1562.00;  Mdse. 
sold,  1214.70;  Net  Gain  for  thp  month,  66.60;  Present  Worth  of  the  firm,  6166.60. 


OCTOBER    1,   188-. 

Purchase  of  Wm.  B.  Henderson,  this  da}',  his  interest  in  the  business,  and  pay  him  as  follows: 
Cash,  2000.00,  and  check  on  Flower  City  Bank  for  balance  of  his  present  worth. 


Dejwsit  cash  in  Flower  City  Bank,  500.00. 


2. 


Sell  L.  B.  Mason,  500  lbs.  B.  Metal,  @  16fc.  lb.;  5  doz.  No.  2  Cow  Bells,  @  9.75  doz.;  25  pairs 
B.  D.  Hangers,  @  2.75  pr. ;  9  doz.  C.  S.  Augers,  @  7.00  doz.;  6  U.  C.  Wringers,  @  7.50  ea.  Receive 
in  payment,  cash,  75.00.     Balance  on  % 

4. 

Draw  a  sight  draft  on  Ceo.  W.  Banning,  Brocki)ort,  for  250.00,  and  deposit  same  in  F.  C.  Bank  to 
your  credit,  less  ^  ^  for  collection. 

6. 
Sales  for  cash,  as  per  Cash  Drawer,  80.50. 

Accept  Corning  &  Co.'s  draft,  at  5  days'  sight,  favor  S.  B.  Roby  &  Co.,  payable  at  F.  C.  Bank, 
200.00. 

7. 
Loan  J.  D.  Smith  cash,  to  be  returned  on  the  9th  inst.,  50.00.     (23-40,  page  6.) 

8. 
Give  Hamilton  &  Mathews  check  on  F.  C.  Bank,  to  apply  on  <^,  30.00. 

9. 
J.  D.  Smith  returns  the  cash  loan  of  7th  inst.,  50.00. 

10. 
Buy  of  Hart,  Bliven  &  Mead,  New  York,  on  ^c,  20  doz.  Cast  Steel  Axes,  @  12.00  doz.;   15  doz. 
10-inch  Wrought  Wrenches,  @  12.00  doz.;  30  doz.  Shovels,  steel  edge,  @  14.00  doz. 

Draft  drawn  on  Geo.  W.  Banning,  4th  inst.,  has  been  returned  protested  for  non-payment.  Give 
check  on  F.  C.  Bank  to  take  up  the  draft  and  i)ay  protest  fees  on  same,  1.75.  (See  instructions  under 
Ex.  38,  page  44  ;  also  Note  No.  2,  page  52.) 

Receive  cash  for  a  note  due  to-day. 

Student  draws  100.00  from  the  business,  for  private  use,  by  check  on  F.  C.  Bank. 

'12. 
Deposit  cash  in  F.  C.  Bank,  500.00. 

Sell  Barber  &  Swift,  on  %  10  doz.  C.  S.  Axes,  @  15.25  doz.;  5  doz.  P.  G.  Coal  Hods,  @  13.00 
doz.;  3  Ice  Cream  Freezers,  (a)  10.00  ea.;  5  doz.  W.  Wrenches,  (a)  14. .75  doz. 

14. 
C.  B.  Shafer  prei)ays  his  note  of  September  22d  in  cash. 

Pay  Clerk's  Salary  in  full  to  date,  in  cash,  35.00. 


» 


Your  acceptance  due  at  F.  C.  Bank  to  day  has  been  paid  and  charged  to  your  <^. 

15. 

Receive  from  L.  B.  Mason,  to  apply  on  %  his  draft  at  sight  on  Hamilton  &  Mathews,  for  50.00, 
which  you  pass  over  to  them  to  apply  on  your  %     (23-24,  page  6.) 


^i 


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j 


70 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


17 


Pay  Rent  of  Store  for  September  and  October,  by  check  on  F.  C.  Bank,  200.00. 


Receive  cash  for  note  due  to-day. 

Deposit  Cash  in  Flower  City  Bank,  200.00. 


19. 


20. 


Sell  Barber  &  Swift,  10  doz.  W.  Wrenches,  @  14.75  doz.;  5  doz.  C.  S.  Axes,  @  15.25  doz.;  6  doz. 
L.  Squeezers,  @  3.25  doz.;  5  doz.  R.  II.  Bread  Knives,  @  2.10  doz.;  2  Ice  Cream  Freezers,  @  10.00 
ea.  Receive  in  payment,  a  note  dated  October  U  last,  at  90  days,  with  interest,  made  by  Ira  T.  Bush, 
favor  B.  &  S.,  and  endorsed  by  them  to  you,  200.00.  Interest  accrued  to  this  date  allowed  them  (see 
Note  No.  3,  i)age  05).      Balance  on  ^. 

21. 

Receive  cjish  of  G.  W.  Banning  to  ap})lyou«;(-,  250.00,  also  for  i)r<)test  fees  on  draft  returned  iUth 
inst.,  1.75. 

Receive  cash  of  Barber  &  Swift,  on  %  300.00. 

22. 
Deposit  cash  in  F.  C.  Bank,  500.00. 

Frank  N.  Harper,  whose  note  Student  endorsed  last  October  for  4000.00,  has  failed,  and  com- 
promised with  his  creditors  @  40c.  on  a  dollar.  Give  check  on  F.  C.  Bank,  2400.(10,  for  deticiency  to 
pay  up  note.     (See  note  below. ) 

23. 

Give  Hart,  B.  &  M.,  check  on  F.  C.  Bank,  on  (^c,  100.00. 

24. 
A  note  due  to-day,  at  F.  C.  Bank,  has  been  j)aid  and  charged  to  your  ^. 

» 

Draw  a  draft  on  L.  B.  Mason,  Batavia,  at  GO  days  from  date,  for  184.25.  Have  the  draft  discounted 
at  F.  C.  Bank,  and  the  proceeds  credited. 

25. 

Pay  Hart,  B.  &  M.,  to  ap])ly  on  ^,  Ira  T.  Bush's  note,  received  of  Barber  &  Swift  20th  inst. 
Interest  accrued  to  date  allowed  us. 


Deposit  in  F.  C.  Bank  cash  136.31. 


26. 

27. 


Memorandum. — The  Store  and  ccmtents  were  last  night  destroyed  by  fire.  Nothing  was  saved 
except  the  books  and  papers.     No  insurance. 

Student  has  decided  to  accept  a  proposition  made  to  him  by  Geo.  D.  Whitney,  to  form  a  co-part- 
nershi})  and  continue  the  Hardware  Business. 

Make  a  Balance  Sheet,  and  close  the  Ledger  for  October.  The  following  are  a  few  of  the  results 
which  should  be  shown  by  your  Balance  Sheet:  Balance  in  Bank,  (520.85;  Bills  l*ayable  outstanding, 
200.00;  Bills  Receivable,  account  balances;  Difference  in  Interest  and  Discount  account,  1.37;  Mdse. 
sales  for  October,  984.75;  Net  Loss,  705.04;  Proprietor's  Insolvency,  71.74. 

In  closing  the  accounts  which  show  gains  and  losses,  you  may  transfer  the  differences  directly  to 
the  Proprietor's  account,  instead  of  carrying  them  through  the  Loss  and  (Jain  account.  Close  and 
bring  down  the  balances  of  the  accounts  showing  resources  and  liabilities.  Take  a  Trial  Balance  of 
these  balances  before  proceeding  with  November.     (See  161-102,  page  40.) 

Note. — The  endorsement  of  this  note  In'in^  a  transaction  of  Student  not  connected  with  the  business,  the  It>ss  is  to  be 
debited  to  his  account  instead  of  to  Loss  and  Gain  account. 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


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THEORETICAL    AND     PliAOTIOAL    UOOK  KEEPING. 


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NOVEMBER    1,    188-.      (See   Notes   1    and   2   below.) 

Student  and  Geo.  D.  Whitnoy  luivo  tliis  day  formed  a  co-j)artnerslii}),  under  the  firm  name  of 
Student  &  Co.,  and  have  lea.sed  of  11.  X.  Smitli  the  store  No.  14()G  Main  Street,  at  T-iOO  ju-r  year,  for 
the  purjwse  of  continuing  tlie  Hardware  business  estal)lished  by  Student  &  Henderson. 

The  co-partnersliip  articles  provide  that  Geo.  1).  Whitney  shall  not  be  re(iuired  to  give  any  of  his 
time  to  the  business,  but  shall,  instead,  furnish  a  cash  ca})ital  of  ^5000.  Student  is  to  devote  his  entire 
time  and  energies  to  conducting  the  business.  The  liabilities  shown  by  Student's  l^'dger,  October  31, 
are  to  ])e  assumed  by  the  firm,  and  the  resources  are  to  become  firm  jiroperty.  The  gains  and  losses 
are  to  be  shared  e(pially. 

1. 

Geo.  P.  "Whitney  i)ays  in  cash,  5000.00,  the  amount  of  his  investment  as  ])er  co-])artnership  agree- 
ment.     (After  entering  this  in  the  Journal,  niake  entry  also  in  the  Cash  Book;  see  i)age  78.) 


»> 


Deposit  in  Flower  City  liank,  cash,  4000.00.     (Enter  also  in  Cash  Book;  see  juige  79.) 

2. 

Buy  of  Hemingway  &  Selden,  City,  75  kegs  Cut  Nails,  7500  lbs.,  @  '^a.  per  lb.;  50  Grindstones, 
@  l.OO  each;  10  doz.  C.  S.  Augers,  @  5.50  doz. ;  4  doz.  IT.  C.  Wringers,  (r^  <)0.00  doz. ;  5  doz.  Steel- 
yards, @  8.00  doz.;  25  doz.  Carpet  Stretchers,  @  2.40  doz.  Give  them  in  payment,  your  iu)te  at  10 
days,  payable  at  F.  C.  Bank,  500.00.     Balance  on  ^c. 

3. 

Sell  E.  Langworthy,  Marcellus,  2  doz.  Car])et  Stretchers,  (r^  JJ.OO  doz.;  10  (Jrindstones,  @  2.50 
each;  2  doz.  V.  S.  Augers,  (f^  7.25  doz.;  25  kegs  ('ut  Nails,  2500  lbs.,  @  4c.  lb.  Receive  in  payment, 
cash,  50.00.     Balance  on  "fc.     (Enter  the  cash  in  Cash  Book  also;  see  j)age  78.) 


»» 


Pay  Coming  &  Co.  cash,  to  balance  ^/c.     (Enter  also  in  Cash  Book;  see  l)age  79.) 

5. 

Draw  a  draft,  at  twenty  days  from  date,  on  Barber  &  Swift,  Georgetown,  as  ]>er  their  instructions, 
to  balance  'fr.      Have  the  draft  discounted  at  F.  C.  Bank,  and  the  proceeds  i)laced  to  your  credit. 


ft 


Sell  C.  B.  Shafer,  10  kegs  Cut  Nails,  1000  lbs.,  @  4c.  lb.;  2  Clothes  AVringers,  ^  G.25  each;  3  doz. 
C.  S.  Augers,  (u}  7.25  doz.     Keceive  in  i)ayment,  his  note  at  45  da\s,  j)ayable  at  F.  C.  Bank. 

6. 

Pay  cash  for  2  tons  of  Coal  for  office,  10.80.     (Enter  also  in  Cash  Book;  see  ]>.ige  79.) 

Cash  sales,  as  per  Cash  Drawer,  48.75.     (Enter  also  in  Cash  Book;  see  i)age  78.) 

8. 

Buy  of  E.  Corning  &  Co.,  Albany,  25  Blacksmith's  Drills,  @  COO  each;  25  doz.  P.  G.  Coal  Hods, 
C^  12.25  doz.     Accei)t  their  draft  at  10  days'  sight,  favor  of  themselves,  for  the  amount  of  the  invoice. 

Receive  cash  of  G.  W.  Banning,  to  a})})ly  on  <^r,  100.00. 

9. 

Buy  a  Safe  for  the  Office,  and  })ay  for  same  by  check  on  F.  C.  Bank,  225.00. 

Note  No.  1. — In  the  foUowinu^  months  a  Ca.sh  Book  Ls  to  ln'  kept  n.s  nn  auxilinry  l)o<)k,  nnd  tlio  use  of  the  Bill  Book 
is  to  be  continiU'd.  In  oiMiiini^  tlu;  ('a.-;h  Book,  omit  the  tirst  pa^jjc,  so  us  to  l»riii<;  the  ll('<('ipt.><  and  Dishuisenjents  on 
opiKJsite  pages.  Whenever  ca.sh  is  received,  enter  the  amount,  with  an  iipi)ropriate  ex[)lanation,  on  the  UJt  side  of  the 
Ca.sh  Book,  and  on  the  7^if/ht  side  when  paid  out.  Tiie  difTen-nee  should  exhibit,  at  any  time,  the  cash  on  liand.  At  the 
end  of  the  month  you  will  balance  your  Cash  Book,  bringing  down  the  balance  of  ca.sh  on  hand.  (See  (ash  Book  form, 
on  pages  78  and  79.) 

Note  No.  2.— The  Cash  Book  may  be  kept  as  a  principal  ]>ook.  omitting  all  cash  tnmsartions  from  the  Jounuil.  and 
r>osting  them  dinrtly  from  the  Cash  Book.     (This  method  will  be  illustrated  hereafter.) 

It  is  customary  to  balance  the  Cash  Book  everyday  in  business,  and  prove  the  ca.sh;  that  is,  ascertain  whetlier  the 
cash  on  liand  ugreeu  with  the  balauc(>  shown  by  the  Ciish  Book. 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


73 


Fay  Hart,  Bliven  &  Mead,  in  full  of  <^,  as  follows:    Cash,  250.00;  C.  B.  Shafer's  note  received  5th 
inst.,  less  discount  to  maturity;  and  check  on  F.  C.  Bank  for  balance. 

10. 
Deposit  in  F.  C.  Bank  all  the  cjish  on  hand. 


Cash  sales,  as  per  Cash  Drawer,  85.35. 


11 


Sell  Barber  &  Swift,  10  B.  S.  Drills,  @  7.25  each;  5  doz.  P.  G.  Coal  Hods,  @  15.00  doz.     Pteceive 

their  check  on  Farmers'  Bank  of  Georgetown,  50.00;  and  their  note  at  10  days,  payable  at  Farmers' 

Bank,  for  balance. 

12. 

Pay  Hamilton  &  Mathews,  in  full  of  ^,  the  check  received  of  Barber  &  Swift  11th  inst.,  less  cost 
of  collecting  same,  25c.,  and  currency  for  balance. 

13. 

Buy  of  Pratt,  Conway  &  Mills,  Pittsburgk,  200  kegs  Cut  Nails,  20,000  lbs.,  @  3c.  lb.  Pay  them 
cash,  50.00;  your  check  on  F.  C.  Bank,  150.00;  and  your  two  notes  in  equal  amounts  for  the  balance, 
one  at  30  days  and  the  other  at  (JO  days,  both  payable  at  F.  C.  Bank,  with  interest. 

14. 

Sell  L.  B.  Mason,  on  <^,  2  doz.  C.  S.  Augers,  @  7.25  doz.;  5  doz.  Carpet  Stretchers,  (5;  3.00  doz. ; 
10  kegs  Cut  Nails,  1000  lbs.,  @  4c.  lb. 


Cash  sales,  as  per  Cash  Drawer,  18.50. 


» 


15. 


A  note  due  at  F.  C.  Bank  to-day  has  been  charged  to  your  <'^. 

16- 

Sell  Oliver  Bro's  &  Co.,  Williamsburg,  50  kegs  Cut  Nails,  5000  lbs.,  @  4c.;  10  B.  S.  Drills,  @ 
7.25;  3  doz.  Steelyards,  @  9.15  doz.  Receive  in  payment,  a  note  made  by  Louis  Ernst,  in  their  favor, 
dated  October  15th  last,  at  90  days,  payable  at  Traders'  Bank,  and  endorsed  by  them  to  jou,  200.00, 

less  discount  to  maturity.     Balance  on  ^. 

18. 

Receive  cash  of  E.  Langworthy,  to  apply  on  ^,  50.00. 

19. 
Buy  of  Hart,  Bliven  &  Mead,  1  doz.  10-qt.  Ice  Cream  Freezers,  @  90.00  doz.;   2500  lbs.  Babbit 
Metal,  @  12^0.  lb.;   20  doz.  No.  2  Cow  Bells,  @  8.10  doz.;   15  Copying  Presses,  with  wheel,  @  4.75 
each;   100  pairs  B.  D.  Hangers,  @  2.00  pr. ;   75  doz.  R.  H.  Bread  Knives,  @,  85c.  doz.      Give  them 
check  on  F.  C.  Bank  for  one-half  of  the  invoice.     Balance  on  ^. 

20. 
Student  ai)])roj)riate8  the  following  for  his  individual  use:     1  pr.  B.  D.  Hangers,  2.00;  1  Copying 
Press,  4.75;  1  T.  C.  Freezer,  7.50. 


Deposit  in  F.  C.  Bank  all  the  cash  on  hand. 


>» 


21 


Pay  Daily  Tribune,  Advertising  Bill,  by  check  on  F.  C.  Bank,  18.50. 


» 


An  acceptance  due  at  F.  C.  B;ink  to-day  has  been  charged  to  your  <^. 

22. 

Sell  L.  B.  Mason,  2  doz.  Cow  Bells,  @  9.50  doz.;   4  Copying  Presses,  @  COO  each;  25  kegs  Cut 
Nails,  2500  lbs.,  Qi>  4c.  lb.     Receive  in  payment,  cash,  50.00.     Balance  on  <^. 

23. 
A  note  due  at  F.  C.  Bank  to-day  has  been  charged  to  your  ^e. 

Barber  &  Swift  pay  25.00  cash  on  their  note  due  to-morrow,  and  renew  the  balance  by  a  new  note 
at  30  days,  i)ayable  at  Farmers'  Bank.     Interest  on  the  new  note  ])aid  in  advaiu'e  in  cash. 


Sim 


74 


THEORETICAL    AND    PRACTICAL    BOOK  KEEPING. 


THEORETICAL    AND    PRACTICAL    BOOKKEEPING. 


70 


% 


ft 


25 
Accept  a  draft  on  you  by  Hart,  B.  &  M.,  at  15  days'  sight,  for  250.00,  to  ap])ly  on  ^.. 

27. 
Receive  cash  of  Geo.  W.  Banning  to  balance  his  '^. 

n 

Sell  Oliver  Bro's  &  Co.,  on  %  500  Iba.  B.  Metal,  @  14c.  lb.;  20  doz.  R.  If.  Bread  Knives,  @  1.05 
doz. ;  25  pairs  B.  D.  Hangers,  (a)  2.50;  100  kegs  C.  Nails,  10,000  lbs.,  (a)  4c. 

29 

The  draft  drawn  on  liar]>er  «&-  Swift,  5th  inst.,  due  yesterday,  was  ])rotested  for  non-])aynient. 
Protest  fees,  1.25.     Give  check  on  F.  C  Bank  to  cover  the  draft  and  fees.     (See  note  below.) 

Give  Hemingway  &  Selden  your  check  on  F.  C  Bank,  to  apply  on  <^,  100.00. 

30. 
Draw  a  sight  draft  on  L.  B.  Mason  for  75.00,  and  i>ay  it  to  Hart,  B.  &  M.,  to  a])i)ly  on  °jc. 

»> 

Pay  one  month's  rent  as  follows:  Deliver  goods  from  the  store  amounting  to  58.75,  on  H.  N. 
Smith's  order,  and  })ay  the  balance  in  cash. 

After  your  Journal  has  been  approved,  you  may  balance  your  Cash  Book  and  bring  down  the 
balance  of  cash  on  hand,  as  illustrated  on  ])age8  78  and  71).  You  will  observe  that  in  bringing  down  the 
balance  it  is  carried  to  the  last  column,  the  object  being  to  avoid  including  this  amount  in  the  receii)ts 
of  cash  for  December,  which  are  to  be  entered  in  the  first  column. 

Since  the  debits  and  credits  of  cash  are  shown  in  detail  in  the  Cash  Book,  you  may  omit  them  in 
posting  from  the  Journal,  and  simply  ])ost  the  debit  and  credit  footings  as  shown  by  the  Cash  Book. 

Post  all  the  other  debits  and  credits  from  the  Journal  as  heretofore  instructed.  Post  under  the 
September  and  October  headings,  opening  new  accounts  when  necessary.  Give  each  new  account 
one-third  of  a  page  space.  After  you  have  comjileted  the  })osting,  take  a  Trial  lialance.  Should  your 
Trial  Balance  not  prove,  see  94  to  109,  page  21.  None  of  the  accounts  are  to  be  closed.  If  an 
account  balances,  rule  it  up.  Should  an  account  get  crowded  for  sjjace,  transfer  it  to  a  new  page. 
(See  154-156,  ])age  30.)  A  few  results  are  here  given:  DilTerence  in  Bank  account,  3147.01;  Cash. 
134.14;  Bills  Payable,  050.00;  Interest  and  Discount,  1.50;  Expense,  354.55;  Mdse.  bought,  2005.13; 
Mdse.  sold,  1058.80. 

DECEMBER    1,  188-. 

Buy  of  E.  Corning  k  Co.,  10  doz.  C.  S.  Augers,  %  5.50  doz.;  20  doz.  P.  G.  Coal  Hods,  %  12.00 

doz.     Give  them  note  at  20  days,  payable  at  F.  C.  Bank,  with  interest,  150.00;  cash,  45.00.      Balance 

on  % 

2. 

Receive  of  E.  Langworthy,  cash  to  balance  his  ^c. 

4. 

Sell  C.  B.  Shafer,  2  I.  C.  Freezers,  @  10.00  ea.;  500  lbs.  Babbit  Metal,  @  15c.  lb.;  5  doz.  Cow 
Bells,  @  9.50  doz.;  10  doz.  R.  H.  Bread  Knives,  (ct,  1.05  doz.  Receive  in  i)ayment,  his  note  at  15  days 
for  75.00;  cash,  25.00.     Balance  on  «t. 

6. 

Have  Louis  Ernst's  note,  received  10th  ult.,  discounted  at  F.  C.  Bank,  and  the  i>roceed8  jHaced  to 
your  credit. 


Pay  Clerk's  Salary  in  cash,  50.00. 


8. 


Note. — The  fee.s  in  this  case  are  properly  chargeable  to  Barber  &  Swift\s  account,  as  the  draft  wa.s  drawn  at  their 
request. 


Receive  Oliver  Bro's  k  Co.'s  check  on  City  Bank  of  Williamsburg,  101.90,  on  «fc. 

12. 
Buy  of  Hamilton  k  Mathews,  50  doz.  Brass  Rod  Curry  Combs,  @  1.75  doz.;    10  doz.  10-inch 
Trowels,  (^  8.50  doz. ;  25  doz.  Boot  Jacks,  @  3.25  doz.     Pay  them  Oliver  Bro's  &  Co.'s  check,  received 
9th  inst.,  and  your  check  on  F.  C.  Bank  for  balance. 


Deposit  cash  in  F.  C.  Bank,  50.00. 


j> 


13. 


An  accei)tance,  due  to-day,  has  been  charged  to  your  <^  at  F.  C.  Bank. 


14. 
Sell  F.  E.  Hodgson,  Maplewood,  25  kegs  Cut  Nails,  2500  lbs.,  @  4|c.;  5  doz.  B.  R.  Curry  Combs, 
(fl^  2.25  doz.;  3  doz.  Boot  Jacks,  @  5.00  doz.;  5  B.  S.  Drills,  @  7.25.     Receive  his  note  at  00  days, 
endorsed  by  A.  M.  Hardy,  payable  at  Branch  County  National  Bank,  for  100.00.     Balance  on  % 

16. 
Your  note  and  interest  due  to-day  has  been  charged  to  your  ^c  at  F.  C.  Bank. 

n 

Cash  sales,  per  Cash  Drawer,  55.25. 

18. 
Give  Hemingway  &  Selden,  check  on  F.  C.  Bank,  to  balance  <^. 

20. 
Buy  of  Pratt,  Conway  &  Mills,  500  kegs  Cut  Nails,  50,000  lbs.,  %  3fc.     Give  them  check  on  F.  C. 

22. 


Bank  in  full  payment  for  same. 

Receive  cash  for  a  note  due  to-day 


23. 


Sell  E.  Langworthy,  100  kegs  Cut  Nails,  10,000  lbs.,  @  4|c.  lb.;  3  doz.  10-inch  Trowels,  @  10.25 
doz.;  20  doz.  B.  R.  Curry  Combs,  @  2.25  doz.  Receive  in  i)ayment,  his  draft  at  one  day's  sight  on 
Hemingway  &  Selden,  which  they  accept,  250.00.     Balance  on  ^. 


Receive  cash  of  C.  B.  Shafer,  in  full  of  ^c. 


99 


24. 


Your  note  due  at  F.  C.  Bank  to-day  has  been  charged  to  your  ^. 

25. 
Oliver  Bro's  &  Co.  represent  that  the  Babbit  Metal  sold  them  27th  ult.  was  of  an  inferior  quality, 
and  claim  a  reduction  of  4c.  per  lb.     Hart,  B.  &  M.,  of  whom  you  bought  the  Metal,  instruct  you  to 
allow  the  claim  and  charge  it  to  them. 


Receive  cash  for  a  note  due  to-day. 
Deposit  in  F.  C.  Bank  all  the  cash  on  hand. 


26. 


» 


27. 


Receive  cash  for  an  acceptance  in  your  favor  due  to-day. 

>9 

Sell  Geo.  \V.  Bannmg,  on  <^^,  4  doz.  R.  H.  Bread  Knives,  @  1.05  doz.;  1  doz.  Cow  Bells,  @  10.07 
doz.;  5  doz.  Boot  Jacks,  @  3.25  doz.;  1  Copying  Press,  0.00;  2  doz.  Carpet  Stretchers,  @  3.00  doz.; 
50  kegs  Cut  Nails,  5000  lbs.,  @  4r|c.  lb. 

29. 

Receive  cash  of  Oliver  Bro's  &  Co.,  to  balance  <^. 


re 


THEORETICAL    AND    PRACTICAL    BOOKKEEPING. 


TIIKOKKTICAL    AND    PRACTICAL    BOOK-KEEPING. 


77 


*) 


|l 


m 
ft 


30. 

Barbor  &  Swift  have  compromised  with   their  creditors  at  AO  ^.     "Receive  cash  of  tliem  on  ihat 
basis  ill  full  settlement  of  their  "/c. 


*f 


Draw  a  sight  draft  on  L.  B.  Mason  for  the  balance  lie  owes  you,  and  i)ay  same  to  Hart,  IJliven  & 
Mead,  together  with  sutiicient  cash  to  balance  their  "/•. 

31. 
Pay  Rent  of  Store,  100.00,  and  Clerk's  Salary,  50.00,  in  cash. 

n 
Deposit  in  Bank  all  the  cash  on  hand. 
NoTK. — Close  the  ('asli  Book  ami  poHt  us  instructed  on  pag(^  74. 

INVENTORIES,   DECEMBER  31,  188-. 

M  DSE. — Goods  on  hand,  as  per  Inventory  Book, 355O  25 

EXPENSE. — Safe  on  hand,  valued  at 200  00 

Make  out  Balance  Sheet,  and  close  the  Ledger.     The  Summary  of  your  Balance  Sheet  should  agree 
with  the  following: 


SUMMARY,   DECEMBER  31,  188-. 


Total  Gains,  - 
'*     liosses. 

Net  Gain, 


Total  Resources, 
"     Liabilities, 

Present  Worth,  - 


413  (i8 
10(>4  2«> 


6278  27 
300  00 

5978  27 


Student's  ^  Net  Gain, 
*'         acc't  debited, 


(< 


Present  Worth, 


Whitney's  Investment, 

4  Net  (Jain,    - 


<< 


a 


Present  Worth, 
Present  Worth  of  Firm, 


532  13 

85  90 

440  14 

5000  00 

532  13 

• 

5532  13 

6978  27 


Note.— After  you  have  completed  the  work  ujMm  your  books,  present  them  to  tlie  teacher  for  inspection.  An 
examination  Avill  likewise  Ik?  given,  in  wiiiclj  you  will  1m?  rc(iuin'd  to  make  the  journal  entries  for  all  of  the  parlies  in  a 
large  variety  of  business  transaetions.  together  with  a  review  of  the  principles  as  outlined  in  the  questions  uixm  pages  53. 
54  and  63,  together  with  the  following: 

MISCELLANEOUS   QUESTIONS. 

Note. — Written  answers  are  require<l  to  the  following  (piestions. 

*  From  what  does  Double  Entry  Book-keeping  take  its  mime?  *  IIow  are  you  enabled  to  decide  to 
which  of  the  two  general  classes  of  acc(umts  used  in  double  entry  any  i)articular  account  belono-s? 
'  What  title  may  be  used  instead  of  the  j)r<)i)rietor's  luime?  *  Mention  the  three  accounts  in  which  the 
excess,  if  any,  must  always  ap})ear  on  the  same  side,  and  state  the  reason  in  each  case?  '  To  which  of 
the  two  geiu^ral  classes  of  accounts  docs  a  Personal  account  belong?  •  What  circumstance  mi'^-ht  arise 
to  place  it  in  the  other  class?  '  Why  is  it  necessary  that  Bills  Payable  aiul  Bills  Receivable  sliould 
always  be  debited  and  credited  with  their  face  value?  *  Mention  some  of  the  errors  which  will  not 
affect  the  eciuality  of  the  Ledger.  *  In  case  the  Trial  l^alance  does  not  ])rove,  give  the  short  tests  to  be 
applied  before  i)roceeding  to  examine  the  i)osting.  '"When  the  check  of  aiu>ther  jKTson  is  received, 
how  is  it  jounuilized?  "  Give  an  example  of  an  inventory  showing  a  liability.  '*  Give  the  two  wavs  of 
finding  the  Present  Worth  in  doulde  entry.  "  What  is  meant  by  Insolvency?  '*  What  is  the  object  of 
closing  accounts  showing  losses  and  gains?  '*  In  closing  an  account,  why  is  the  eqimlity  of  the  Led^rer 
not  affected?  '*  What  is  meant  by  the  acceptance  of  a  draft?  "  Give  the  general  rule  for  journalizint' 
drafts  when  drawn  on  account.  '*  What  jounud  entry  is  nuule  when  the  proj»rietor  comiucnces  busi- 
ness with  both  Kesources  and  Liabilities?  "What  would  a  Shi])ment  account  show  at  the  time  of 
making  a  Balance  Sheet,  if  no  Account  Sales  had  been  received?  *MVhat  wotild  a  Gousifument 
account  show,  if  uncloseil  at  time  of  iiiakiug  a  Balance  Sheet? 


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THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


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BUSINESS 

RECEIPT  (To  Apply  on  Account). 
1175.25.  Philadelphia,  Jan.  6,  188- 

Received  of  Wm.  De  Long,  One  Hundred  and 
Seventy-five  -^^^  Dollars,  to  apply  on  account. 

CHAS.  G.  APGAR 

RECEIPT  (In   Full  of  Account). 
$200.  CoBURG,  0.,  Mar.  16,  188-. 

Received  of  Walter  Williams,  Two  Hundred 
Dollars,  in  full  of  account  to  date. 

SMITH  &  WEIGIITMAN. 

RECEIPT  (Payment  on   Note). 
$150.  Richfield,  Pa.,  Sept.  27,  188-. 

Received  of  Elihu  Biddleconi,  One  Hundred 
and  Fifty  Dollars,  to  apply  on  his  note,  in  our 
favor,  dated  Mar.  27,  188- 

GEO.  T.  CREED  &  CO. 

DUE    BILL  (Payable  in  Goods). 
125.  Sardinia,  N.  Y.,  Aug.  1,  188-. 

Due  R.  F.  Bain})ridge,  Twenty-five  Dollars,  i)ay- 
able  in  goods  from  our  store. 

EATON.  CROSS  &  CO. 


FORMS. 

DUE    BILL  (Payable  in   Money). 
$47.04.  Smith's  Hollow,  Dec.  1),  188-. 

Due  Cha's  Parker,  or  order,  on  demand.  Forty- 
seven  and  yt^V  I^ollfirs.  W.  H.  GORDON. 

ORDER  (To  Apply  on  Account). 
$50.  Chelsea,  Mich,  Apr.  10,  188-. 

French  &  Hagerman,  149  Lagrange  Street,  will 
})lease  pay  tlie  bearer  Fifty  Dollars,  and  charge 
the  same  to  my  account.  D.  W.  EVEREST. 

ORDER  (Payable  in  Goods). 

Burlington,  Kas.,  Dec.  6,  188-. 

E.  &  S.  Cam}>bell  will  j)lease  deliver  to  bearer 
groceries,  not  exceeding  in  amount  Twenty-five 
Dollars,  and  charge  the  same  to  me. 

RALPH  BARTON. 

INDIVIDUAL   NOTE. 

(See  enerravod  form,  on  pa^re  21.) 

$350.  Rochester,  N.  Y.,  Feb.  2,  188-. 

Six  days  after  date  I  ])romi8e  to  pay  W.  C. 
Cooper,  or  order.  Three  Hundred  and  Fifty  Dol- 
lars, value  received. 

Due  Feb.  11.  18S-.  STUDENT 


THEORETICAL    AND    PRACTICAL    BOOKKEEPING. 


79 


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BUSINESS    FORMS. 


JOINT  NOTE. 

$275.  Cedar  Falls,  Iowa,  Oct.  1,  188-. 

Sixty  days  after  date,  we  promise  to  pay  Orlando 
Stevens,  or  order.  Two  Hundred  and  Seventy-five 
Dollars,  for  value  received,  at  Farmers'  Bank. 

E.  F.  HAYDEN. 
GEO.  N.  BROWN. 

JOINT  AND  SEVERAL  NOTE. 

$1500.  Brighton,  III.,  June  4,  188-. 

One  year  from  date,  for  value  received,  we,  or 
either  of  us,  ])romise  to  pay  to  the  order  of  Henry 
H.  Moffatt,  Fifteen  Hundred  Dollars. 

FRANK   S.  HORTON. 
M.  BORTELLE. 

NON-NEGOTIABLE  NOTE. 
$100.  Trenton,  N.  J.,  May  15,  188-. 

On  demand,  1  j)romise  to  pay  Lyman  S.  Barber, 
One  Hundred  Dollars,  for  value  received,  with 
interest. 

C.  C.  BARNARD. 


DRAFT  (Time  from   Sight). 

(See  engraved  form  on  page  41.) 

$2000.  Baltimore,  Oct.  28,  188-. 

At  ten  days'  sight,  pay  to  Eric  Hunter,  or  order. 
Two  Thousand  Dollars,  value  received,  and  charge 
the  same  to  my  account. 

To  J.  Y.  Wentworth,  SIMON  DUNCAN. 

Albany,  N.  Y. 

DRAFT  (Time  from   Date). 
$300.  Hamilton,  Sept.  5,  188-. 

Thirty  days  after  date,  pay  to  J.  C.  Goodrich, 
or  order.  Three  Hundred  Dollars,  value  received, 
and  charge  the  same  to  my  account. 

To  Crowley  &  Leavitt,        ALFRED  W.  HOLLEY. 
Evansville,  Pa. 

DRAFT  (At  Sight). 
$100.  Olean,  Feb.  IT,  188-. 

At  sight,  pay  to  the  order  of  Orrin  Greenleaf, 
One  Hundred  Dollars,  value  received,  and  charge 
the  same  to  our  account. 

To  Park  Bank,  WELLSLEY.  HOYT  &  CO. 

New  York. 


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80 


TllJ::oKEilCAL    AND    J'UACTUAL    JJOOK-lsLEEl'lJNG. 


BUSINESS    FORMS. 


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ACCOUNT    SALES 


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SINGLE    ENTRY. 


'  The  distinguishing  feature  of  Single  Entry  book-keeping  is,  that  Personal  accounts  onl^-  are 

kept  in  tlie  Ledger. 

*  This  system  of  book-keeping  contemplates  such  a  record,  or  the  filing  of  such  documents  for 
reference  only,  as  will  enable  the  proprietor  to  determine  at  any  time  the  Resources  and  Liabilities  of 
his  business,  which  cannot  be  found  by  taking  an  inventory. 

'  For  this  purpose  the  practice  is  to  journalize  and  post  ])ersonal  accounts  only.  Cash  receipts  and 
payments  are  entered  in  the  Cash  Book,  and  Bills  Receivable  and  Bills  Payal>le  in  the  Bill  Book. 

*  It  is  sometimes  found  necessary  to  employ  additional  books  of  record,  the  number  and  character 
depending  upon  the  nature  and  extent  of  the  information  which  it  is  desired  to  preserve:  as.  Order 
Book,  Invoice  Book,  Sales  Book,  etc. 

*  Since  no  accounts  showing  gains  and  losses  are  kept  in  Single  Entry,  it  follows  that  an  itemized 
statement  of  the  gains  and  losses  of  the  business  cannot  be  obtained. 

"The  Net  Gain  or  Net  Loss  of  the  business  can  be  determined,  however,  in  the  following 
manner:  First  ascertain  the  Present  Worth,  by  finding  the  difference  between  the  Resources  and 
Liabilities,  and  then  compare  it  with  the  Investment. 

'  If  the  present  worth  is  greater  than  the  investment,  the  difference  shows  a  net  gain;  if  less,  a 
net  loss. 

The  following  sets  are  designed  to  illustrate  book-keeping  by  Single  Entry,  also  changing  Single 
Entry  books  to  Double  Entry.  The  books  to  be  used  are  Journal,  Ledger,  Cash  Book  and  Bill  Book. 
The  form  of  Journal  is  illustrated  on  page  82.     Cash  Book  and  Bill  Book  are  to  be  kept  in  the  form 

used  heretofore. 

81 


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THKOKKTICAL   AND    PRACTICAL    BOOK-KEEPING. 


83 


JANUARY    1,   188-. 

Commence  Inisiness  with  tlie  following  resources:  Store  and  Lot  valued  at  2500.00;  Horse  and 
Wagon  valued  at  225.00;  Cash,  500.00.  {Enter  in  Journal  and  Cash  Book;  see  form  of  Journal  on 
page  82. ) 


n 


Buy  of  Smith,  Perkins  &  Co.,  City,  on  <^,  at  15  days,  10  bbls.  A  Sugar,  1250  lbs.,  @  10c. ;  10  eh. 
Japan  Tea,  350  lbs.,  @  GOc;  10  cli.  Black  Tea,  350 "lbs.,  @  45c.;  5  half  bbls.  Mackerel,  @  4.00;  10 
mats  Java  Coffee,  1250  lbs.,  @  22c.     {Enter  in  J.;  seepage  82.) 

Note. — It  is  unnecessary  to  enter  the  items  in  the  Journal,  the  Invoice  itself  l)eing  placed  on  file  for  reference. 

Sell  A.  Thompson,  Aurora,  on  %  2  ch.  J.  Tea,  70  lbs.,  @  70c.;  2  ch.  B.  Tea,  70  lbs.,  @  50c. 
(J.;  see  form  on  page  82.) 

Cash  sales,  per  Cash  Drawer,  175.38.     {C.  B.;  see  3,  page  81.) 

2. 
Sell  Mrs.  Eliza  Smith,  27  Main  St.,  on  <f,  10  lbs.  A  Sugar,  @  lie;  1   lb.  J.  Tea,  Cd,  85c.;  2  lbs. 
J.  Coffee,  @  28c.     U.) 

n  » 

Buy  of  Smith,  Perkins  &  Co.,  on  ^,  10  bbls.  Brown  Sugar,  1250  lbs.,  (^  9c.;  10  sacks  Rio  Coffee, 
800  lbs.,  @  18c. 

Sell  Wm.  Johnson,  144  Lyell  Ave.,  on  ^,  4^  lbs.  Mackerel,  @  12c.;  1  lb.  B.  Tea,  55c.;  2  lbs.  Rio 

Coffee,  @  24c. 

3. 

Give  Smith,  Perkins  &  Co.,  your  note  at  10  days,  payable  at  College  Bank,  to  apply  on  <^,  300.00. 
{J.  and  B.  B.;  see  3,  page  81.) 

Note.— Before  entering  this  note,  draw  a  red  line  across  both  pages  in  the  Bill  Book,  Ix'low  the  last  entry,  to  separate 
this  from  the  i)revious  sets. 

Receive  cash  of  A.  Thompson,  on  <^,  15.00.     (,/.  and  C.  B.) 

it 
Buy  of  Smith,  Perkins  »&  Co.,  on  <^,  12  doz.  Brooms,  @  2.25;  4  doz.  Wood  Pails,  (9i  2.00. 


» 


Sell  James  Jamieson,  27  Broadway,  on  <^,  25  lbs.  A  Sugar,  @  10c. ;  4  lbs.  J.  Tea,  @  80c.;  2  lbs. 

Rio  Coffee,  (a)  24c. 

5. 

Pay  Clerk  cash,  to  apjdy  on  Salary,  5.00.     {C.  B.) 

Cash  sales,  per  Cash  Drawer,  246.75.     (C.  B.) 

6. 

Sell  Mrs.  Eliza  Smith,  on  <^,  10  lbs.  B.  Sugar,  @  10c. ;  4^  lbs.  MiR^keicl,  (a^  12c.;  2  Wood  Pails, 

@  25c. 

»> 

Receive  cash  of  Wm.  Johnson,  3.00,  and  of  James  Jamieson,  5.00,  on  ^jc.     {J. -and  C.  B.) 

7. 

Buy  of  H.  Gordon  &  Co.,  City,  on  your  note  at  20  days,  payable  at  College  Bank,  2  bbls.  A  Sugar. 
250  lbs.,  @  10c. ;  2  bbls.  Brown  Sugar,  250  lbs.,  @  8^c. ;  1  ch.  Japan  Tea,  35  lbs.,  @  55c.  {B.  B.; 
see  3,  page  81;  also  see  note  below. ) 

Note. — No  entry  is  to  be  made  in  the  Journal,  because  your  indebtedness  is  not  to  Gordon  &  Co.  personally,  but  ir 
the  form  of  Bills  Payable,  and  is  shown  by  the  Bill  Book. 

» 
Sell  Mrs.  Eliza  Smith,  on  <^,  2  Wood  Pails,  @  22c.;  1  Broom,  25c.;  1  lb.  Rio  Coffee,  24c. 


V 

» 


I- 

i ' 


84 


THEORETICAL    AND    PRACTICAL    BOOK  KEEPING. 


Cash  sales  for  the  day,  per  Cash  Drawer,  1:;J7.G4. 

8. 
Receive  of  Alex.  Thonii)son,  his  note  at  3  days,  payable  at  Traders'  Bank,  to  apply  on  <f,  25.00. 
(/.  and  B.  B.) 

Note.— A  gcKMl  rule  for  the  student,  who  is  familiar  with  <loul)Ie  entry,  to  use  in  journalizing  by  single  entry,  is,  first 
to  decide  what  journal  entry  would  1k"  made  for  the  transjiclic.n  hy  the  ilmihU'  entry  metlKMl;  tiun  if  he  lind  in  such  entry 
that  a  jjerson  is  to  be  eillier  debited  or  credited,  the  same  i)erson  must  be  debited  or  credited  in  the  single  entry  Journal, 
otherwise  no  journal  entry  is  to  be  made. 

9. 

Sell  Wm.  Johnson,  on  ^,  50  lbs.  B.  Sugar,  @  O^e.;   1   Broom,  25c.;  5  lbs.  l{io  Coffee,  @  24c.;  2 
Wood  Pails,  @  22c. 


Pay  cash  for  ton  of  Coal  for  oflBce  use,  6.50. 


99 


10. 


Pay  Smith,  I'erkiiis  &  Co.,  cash  to  apply  on  <^,  100.00.     (,/.  and  C.  B.) 
Buy  of  Geo.  F.  Doyle,  Salina,  on  «t,  at  10  days,  25  bbls.  Salt,  @  1.25. 


n 


Wm.  Johnson  returns  for  credit,  4  lbs.  of  the  Kio  Coffee  bought  Uth  inst.,  the  quality  not  being 
satisfactory. 

n. 

Sell  A.  Thompson,  10  bbls.  Salt,  @  1.40;  2  ch.  J.  Tea,  70  lbs.,  (cb,  TOc.;  3  bbls.  B.  Sugar,  375  lbs., 
@  10c.     Keceive  in  ijayment,  cash,  25.00.     Balance  on  %     {J,  and  C.  B.) 

NoTK.— In  transactions  like  the  above  in  single  entry,  it  is  customary  to  make  an  entry  in  the  .Journal  debiting  the 
person  with  the  whoUj  bill  purchased,  and  then  make  a  second  entry  giviug  Lim  credit  for  lUe  amount  paid. 

1? 

Pay  Clerk  cash  to  apply  on  Salary,  10.00. 


ii 


Receive  cash  of  Mrs.  Eliza  Smith,  to  apply  on  ^,  1.50. 

13. 
Pjiv  Smith,  Perkins  k  Co.,  to  apply  on  <f,  cash,  50.00,  and  your  note  at  ten  days,  payable  at 
College  Bank,  100.00.     (/.,  C.  B.  and  B.  B.) 


» 


Sell  Wm.  Johnson,  on  «/-,  10  lbs.  A  Sugar,  @  10c. ;  2  lbs.  J.  Tea,  @  85c. ;  5  lbs.  Rio  Coffee,  @  22c. 

14. 
Buy  of  Geo.  F.  Doyle,  on  (^,  at  10  days,  25  bbls;  Salt,  @  1.25. 


» 


i> 


15. 


Receive  cash  of  A.  Thompson,  for  his  note  of  8th  lust,  due  to-day,  25.00.     {C.  B.  and  B.  B.) 

Cash  sales,  as  ])er  Cash  Drawer,  358.40. 

Pay  Geo.  F.  Doyle's  sight  draft  on  you  to  apply  on  ^,  in  cash,  25.00.     {J.  and  C.  B.) 

I*ay  Book-keeper  cash,  to  apply  on  Salary,  25.00. 

»> 

Receive  of  A.  Thompson,  his  note  at  ten  days,  payable  at  Traders'  Bank,  to  balance  ^,  119.50. 


» 


Sell  James  Jamicson,  on  '^c,  10  lbs.  B.  Sugar,  @  O^c. ;  2  lbs.  J.  Tea,  @  80c. ;  5  lbs.  Rio  Coffee,  @  24c. 

16. 
Pay  your  note  of  3d  inst.,  favor  of  Smith,  Perkins  &  Co.,  in  cash,  300.00. 

NoTF. — You  may  now  balance  the  Cjish  Book  and  post  the  foregoing  transactions.  Give  each  account  one-fourlh  of 
a  page  sptwe.  Omit  "  To"  and  "  By  "  hereafter  in  iM)sting.  The  lM>oks  are  to  l)e  changed  to  doiible  entry  after  you  have 
completed  the  posting,  full  instructions  for  which  are  given  below.  You  should  study  those  instructions  very  carefully, 
and  perform  the  work  precisely  as  they  direct. 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 

INSTRUCTIONS  FOR  CHANGING  THE   BOOKS  TO  DOUBLE  ENTRY. 


85 


1st.  ^An  inventory  is  to  be  taken  of  the  Mdse.  and  other  property  on  hand,  its  value  being 
estimated  at  what  the  property  could  be  purchased  for  at  the  present  time.  The  result  of  such 
inventory  is  as  follows: 

INVENTORY,  JANUARY  16,   188-. 

Mdse.  on  hand,  ])er  Inventory  Book, 2T0  72 

Horse  and  Wagon,  valued  at 2'25  00 

StoreandLot,  *'       ". 2500  00 

Note. — You  may  copy  the  al)ove  Inventory  in  your  .lournal,  immediately  following  tlie  last  entrj'. 

2d.  *The  resources  and  liabilities  exhibited  by  the  various  books,  viz:  Ledger,  Cash  Book  and 
Bill  Book,  are  next  to  be  obtained,  and,  with  the  Inventories,  arranged  in  a  convenient  form,  as  shown 
below,  for  determining  the  condition  of  the  business. 

STATEMENT,  JANUARY  16,   188-. 


RESOURCES. 

Mdse. ,  per  Inventory, 270  72 

Store  and  Lot,  i)er  Inventory, 2500  00 

Horse  and  Wag(m,  per  Inventor}', 225  00 

Cash,  i)er  Cash  Book ^ 9G1  17 

Bills  Receivable,  i)er  Bill  Book, 119  50 

Personal  Accounts,  per  Ledger, 16  93 

4093  32 


LIABILITIES. 

Bills  Payal)le,  per  Bill  Book, 

Personal  Accounts,  per  Ledger, 


165  50 
500  50 


732  00 


SUMMARY. 


Total  Resources,  4093  32 

"     Liabilities,-. 732  00 


Present  Worth, 3301  32 


Present  Worth, 3301  32 

Investment,   3225  00 


Net  Gain, -..       130  32 


Note.— Make  a  Statement  like  the  above  in  your  Trial  Balance  or  Statement  lx)ok.  Do  not  copy  the  abt)ve  form 
merely,  but  verify  all  of  the  results  by  your  own  books. 

3d.  "The  Present  W^orth  is  found,  as  shown  above,  by  taking  the  difference  between  the  Resources 
and  Liabilities;  and  "  the  Net  Gain  is  then  found  by  taking  the  difference  between  the  Present  Worth 
and  the  Investment. 

4tli.  "  Since  in  Single  Entry  the  Ledger  contains  only  a  portion  of  the  Resources  and  Liabilities, 
viz:  Personal  accounts,  it  is  api)arcnt  that,  to  change  it  to  Double  Entry,  such  additional  accounts 
must  be  opened  as  will  cause  the  Ledger  to  exhibit  all  of  the  Resources  and  Liabilities  of  the  business, 
as  shown  by  the  foregoing  Statement;  and  "the  Net  Gain  must  be  credited  to  the  Proprietor's  account. 

Note. — You  may  now  proceed,  in  accordance  with  the  above  instructions,  to  open  the  additional  accounts  required 
to  place  your  Ledger  in  the  Double  Entry  form.  After  you  have  completed  this  work,  jour  accoimts  should  correspond 
with  those  given  on  pages  86-87.  Mdse.  will  require  one-half  of  a  page  space;  all  other  accounts  one-fourth  of  a  page 
each. 

5th.  "After  the  change  to  Double  Entry  has  been  made  in  accordance  with  the  foregoing  direc- 
tions, your  Ledger  must  ]>e  in  balance,  because  all  of  the  Resources  appear  ui)on  the  Dr.  side,  and  all 
of  the  Liabilities  and  tlie  Present  Worth,  which  is  the  difference  between  the  Resources  and  Liabilities, 
appear  upon  the  Cr.  side. 


:    i 


SBSSPWrtSWStBtKeMM* 


i 


se 


THEORETICAL   AND     PRACTICAL   BOOKKEEPING. 

STUDENT. 


188- 
Juu. 


i«; 


Present  Worth, 


188- 
Jun. 


3 
10 
13 


Bills  Pav., 

Cash, 

Sundries, 


188- 
Jan. 


1 
11 


Mdse. 


188- 

Jan. 

Mdse. 

0 

a 

7 

K 

188- 

i 

Jan. 

2 

Mdse. 

9 

<< 

13 

i( 

188- 
Jan. 


3    \rd8e. 
15 


188- 
Jan. 


15 


Paid  Draft, 


188- 
Jan. 


V> 


(fOods,  jier  Inv. 


3301 

32 
32 

188- 
Jan. 

1 

i«; 

If) 

33«;i 

Jan. 

Invostinent, 
JSiet  (jain, 

82 

3225 
13G 

32 

33(11 

32 

Present  Worth, 

33G1 

32 

SMITH,   PERKINS  &  CO..  City. 


. 

188- 

82  1 

300 
100 
150 

5  50 

Jan. 

1 
«> 

3 

Mds(;. 


A.  THOMPSON.  Aurora. 


,   1 

188- 

82 

84 

1 

Jan. 

3 

100 

50 

8 
11 

50 

15 

184 

Cash, 

Mills  Uec'v, 
Casli, 
liills  Uee'v, 


MRS.   ELIZA  SMITH,   27  Main   Street. 


i 

1  188- 

82: 

1 

2 

51 

01  1 

(1*1  i 

Jan. 

12 

1 

5 

Cash, 


WM.  JOHNSON,   144  Lyell  Ave. 


1  188- 

82 

1 

57 

Jan. 

0 

G 

04  i 

9 

3 

80  i 

1  a 

01  J 

Cash, 
Mdse.  ret'd, 


JAMES  JAMIESON.   27  Broadway. 


! 

188- 

82 

0 
3 

B 

18 
75 

B3 

Jan. 

0 

('ash, 


GEO.    F.    DOYLE,    Sallna. 


;  188- 

25 

Jan. 

10 
14 

Md 


se. 


MERCHANDISE. 


270 


82 

tot 

50 

82 

250 

50 

82 

35 

1  07B 

82 

15 

25 

25 

119 

184 

50 


50 


50 


3 


9G 

B« 


31 

25 

31 

25 

e  2 

50 

THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


REAL  ESTATE. 


87 


188- 
Jan. 


10 


Store  and  Lot, 


2500 


EXPENSE. 


188- 
Jan. 


10    Horse  and  Wagon, 


225 

CASH. 


188- 
Jan. 


10 


Ril.  per  C.   K 


961 

17 

BILLS   RECEIVABLE. 


188- 
Jan. 


10 


On  hand,  i)er  B.  15. 


119 

50 

1 
1 

BILLS  PAYABLE. 


188- 
Jan. 

10 

Outstanding,  \>vr  li.  B. 


1C5 


50 


Note. — You  maj'  now  continup  the  Inisinoss,  the  l>ooks  to  l)e  kept  bj'  Double  Entrj'.     Tlu'  ronibincd  D.iy  B«M»k  :»inl 
Journal  form,  as  illustrated  on  paj^e  04,  is  to  bo  used.     Continue  the  use  of  the  C'tish  Book  and  Bill  BtK)k. 

JANUARY   17,   188-. 
Uuy  of  IT.  Gordon  &  Co.,  on  «>,  10  bhls.  B.  Sugar,  1250  ll)s.,  @  8c.      (J.) 

Cash  sales,  }>er  Cash  Drawer,  75.25.     {J.  and  C.  B.) 

18. 
Sell  Wm.  Johnson,  on  <f,  2  lbs.  J.  Tea,  @  80c.;  5  lbs.  Rio  Coffee,  @  25c.;  30  lbs.  A  Sugar,  (^  lie. 

» 

Sell  E.  T.  Miller,  on  his  note  at  15  days,  ]iayable  at  City  Bank,  5  bbls.  A  Sugar,  025  lbs.,  @.  lO^e.; 
10  bbls.  B.  Sugar,  1250  lbs.,  @  9c.;  3  ch.  J.  Tea,  105  lbs.,  @  05c.     (/.  and  B.  B.) 

19. 
Receive  cash  of  Mrs.  Eliza  Smith,  to  balance  "jc. 

Buy  of  II.  Cordon  &  Co.,  on  %  15  bbls.  A  Sugar,  1875  lbs.,  @  OJc. 

20. 
Sell  James  Jamieson,  (ui  «(•,  20  lbs.  A  Sugar,  @  lie.;  5  lbs.  Rio  Coffee,  Ut  24c.;  2  l»bls.  Sail,  (Tr  1..50. 


Ciish  sales,  i)er  Cash  Drawer,  115.05. 

(Jive  Geo.  l'\  Dovle  yotir  note  at  30  days,  ])ayable  at  College  Bank,  to  balance  <^. 

Buy  of  H.  (Jordon  &  Co.,  on  «/f,  5  ch.  J.  Tea,  175  lbs.,  @  GOc. 


21. 


22. 


Sell  A.  Thom])son.  10  bbls.  Salt,  (ob,  1.40;  2  ch.  J.  Tea,  70  lbs.,  @  70c.;  2  ch.  B.  Tea,  70  lbs.,  @ 
55c.     Receive  cash,  50.00.      Balance  on  '«(•. 


IM 


88 


THEORE17CAL    AND    PRACTICAL    BOOK  KEEPING. 


22. 


Pay  Smitli,  Perkins  &  Co.,  cash  on  ajc,  100.00. 
Cash  sales,  per  Cash  Drawer,  98.34. 


» 


23. 
Sell  Frank  C.  Iledstrom,  Sardinia,  5  ch.  B.  Tea,  175  lbs.,  (ft  55e  •  a  doz  W    I'.il.   (A  9  rn    ,  , 
Brooms,  @  2.f;o;  2  l.ulf  bl,l«.  Mackerel.  @  4.75;  5   ,bls   A  K  ,^,r  c«5  lb,     ;^  ,ol        «^  ' 

at  10  da,.,  pavable  at  First  National  Bal.k^  .0.,.00.     Baiate  ^^r^.  '  ®  '"*"     ^'"^''^  ""  """-' 


Eeceive  casli  of  AVni.  Johnson  on  o(r,  5.00. 


» 


24. 


»» 


25. 


M 


f» 


Buy  of  Geo.  F.  Doyle,  on  your  note  at  ^0  days,  50  bbls.  Salt,  @  1.25. 

Cash  sales,  per  Cash  Drawer,  138.40. 

Pay  cash  for  jn'mninent  improvements  ou  store,  200.00. 

Pay  Gas  Bill  in  cash,  11.75. 

Sell  Wm.  Johnson,  on  a,,  5  Ihs.  J.  Tea,  @  80c.;  50  lbs.  B.  Sugar,  @  O^c;  10  lbs.  Kio  Coifee,  @  25c. 

26. 
Receive  cash  of  James  Jamieson,  to  balance  «;/r,  11.33. 

>» 
Pay  your  note  of  13tli  inst.,  due  to-day,  in  easli. 

27. 

28 
Pay  11.  Gordon  &  Co.  cash  on  <^,  178.44. 

Receive  cash  of  A.  Thompson,  for  his  note  of  15th  inst..  due  to-day. 

29. 


Cash  sales,  per  Cash  Drawer,  21fi.40. 

Sell  the  Horse  and  Wagon  for  cash,  235.00. 


» 


30. 


Pay  your  note  of  7th  inst.,  due  to-day,  in  caslj. 

31. 
Pay  Book-keeper  25.00,  and  Clerk  15.00,  cash  in  full  of  services  to  date. 

INVENTORIES,  JANUARY  31,  188-. 

MDSE.,  as  per  Inventory  Book, 

REAL  ESTATE.— Store  and   Lot,  valued  at 


- 42G  48 

2700  00 

You  may  now  post  and  make  a  Balance  Sheet.     Post  to  the  Cash  account  the  total  receipts  and 

separately.  After  you  have  completed  the  Balance  Sheet,  close  the  Ledger  and  brin<.  down  the 
resources  ,nd  habdit.es  and  pr<.ve  them  upon  a  separate  sheet  of  paper,  as  illustrated  on  pagelo  a^d 
,)resent  the  proo  ,  together  with  your  Ledger,  to  the  teacher  for  inspection  and  approval. 

i346ifNe:i::i!:2^.;r"'^'^  '"'•  ^"  '-"'''^  ''''-''^ ''''''  ^^^^""--'  ^^^^-^^^  ^'^^^^^^^ 


188- 
Feb. 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


FEBRUARY   1,   188-.     (See   Note   No.  1.) 


89 


(Student's  name). 


Commenced  business  this  day  with  the  following  resources  and 
liabilities: 

Cash  on  hand,  per  Cash  Book, 
On  deposit  in  College  Bank, 
100  bbls.  Flour, 

C.  D.  French's  note,  per  Bill  Book, 
Jas.  Harris,  on  ^, 


» 


(Student's  name), 


Note  favor  Geo.  Wells,  i)er  Bill  Book, 
Interest  accrued,  80  davs  {see  iV'o/e  Xo.  2), 
Due  Hill  &  Co.,  on<^,' 

College  Bank, 

Amount  on  deposit,  as  above, 

Jas.  Harris, 

On  account,  as  above. 

Hill  &  Co., 

On  account,  as  alxjve. 


White  Bro's, 

Bo't  Mdse.  on  <^,  per  Invoice  No.  1, 

3. 
Hill  &  Co., 

Paid  them,  on  <^,  by  check  on  College  Bank, 

College  Bank, 

Check  favor  of  Hill  &  Co., 


Cr. 
rces  and 

8500 

@  8.00, 

3000 

4000 

800 

200 

500 

Dr. 

500 

6 

375 

67 

881 

67 

Dr. 

4000 

Dr. 

500 

Cr. 

375 

Cr. 

1181 

Dr. 

100 

Cr. 

100 

SINGLE  ENTRY  CASH   BOOK. 


Invested  by  Student, 

BECEIPTS. 

PAYMENTS. 

1 

3000 

4 

Deposited  in  College  Bank, 

500 

4 

15  bbls.  Beef,                                                                         @  18.75, 

281 

25 

6 

C.  D.  French's  note, 

200 

»' 

White  Bro's,  on  ^c, 

500 

7 

R.  J.  Barton,  to  applv  on  Mdse. 

300 

8 

Office  Books  and  Stationerv, 

25 

9 

0.  W.  J(mes,  on  "/c. 

250 

10 

Deposited  in  (-ollege  Bank, 

1000 

12 

Jas.  Harris,  on  <^', 

200 

Note  No.  1. — The  month  of  February  is  to  be  worked  by  Single  Entry,  as  explained  in  the  previous  set.  A  few  of 
the  first  entries,  as  they  should  be  made  in  your  Journal,  are  given  above.  In  addition  to  the  Personal  accounts,  however, 
a  Bank  account  is  to  be  kept  in  the  Ledger.  A  different  form  for  keeping  a  Single  Entry  Cash  Book  is  also  intn^iucetl 
(see  farm  above).  On  March  1  the  Ixjoks  are  to  l)e  changed  to  Double  Entry,  and  the  business  continued  through  March 
by  that  method. 

Note  No.  2. — For  the  purpose  of  illustrating  both  methods  of  computing  interest  and  discount,  the  one  in  general 
use  in  business  will  hereafter  Ih;  usetl,  viz:  360  days,  or  12  months  of  30  days  each,  will  be  considered  a  year,  and  taken 
as  a  basis  of  computation.  The  Student  is  recommended  to  use  the  6  per  cent,  or  short  method  of  working  interest  and 
discount 


90 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


!d 


f 

! 
I 


[ 


1. 


FEBRUARY.   188-. 
Commence  business  tljis  day  with  the  following  resources  and  liabilities: 

Resoih<'Es:     Cash  on  hand,  :}0()0.()();  on  deposit  in  College  Bank,  4000.00;  100  bbls.  Hour   @ 
8.00;  C.  D.  French's  note,  dated  Jan.  4th  last,  at  30  days,  :^00.00;   Jas.  Harris  owes  on  V 
500.00.  ^' 

Liabilities:    Your  note  favor  of  Geo.  Wells,  dated  Nov.  13  last,  at  90  davs,  ])avable  at  Colle-e 
Bank,  with  interest,  500.00;  Interest  accrued  80  days  on  above  note;  due  Hill  &  Co     on  4 
375.00.  •*        7Cy 

Buy  of  White  Bro's,  on  %  50  bbls.  Pork,  @  15.00;  25  bbls.  Beef,  @  17.25. 
Give  Hill  &  Co.  your  check  on  College  Bank,  to  apply  on  %  100.00.     (J.) 
Sell  O.  W.  Jones,  on  %  25  l)bl8.  Flour,  @  9.00;  15  bbls.  Pork,  @  10.50. 
Deposit  cash  in  College  liank,  500.00. 
Sell  for  cash,  15  bbls.  Beef,  @  18.75. 

Buy  of  Geo.  J.  Marsh,  on  your  note  at  15  days,  50  bbls.  Beef,  @  17.25. 
Receive  cash  for  a  note  due  to-day. 
Pay  White  Bro's  cash  on  «(?,  500.00. 

Sell  R.  J.  Barton,  20  bbls.  Beef,  @  18.50;  25  bbls.  Flour,  @  9.00.    Receive  cash,  300.00.    Balance 
on  «/c. 

Pay  casli  for  set  of  Oftice  Books  and  Stationery,  25.00. 

Receive  cash  of  0.  W.  Jones,  on  <^,  250.00. 

Deposit  cash  in  College  Bank,  1000.00. 

Sell  H.  A.  Strong,  on  his  note  at  00  days,  25  bbls.  Pork,  @  10.25. 

Buy  a  Safe  for  office  use,  and  i)ay  for  same  by  check  on  College  Bank,  225.00. 

Receive  cash  of  Jas.  Harris,  on  <^,  200.00. 

Buy  for  cash,  25  bbls.  Pork,  @  15.00. 

Sell  O.  W.  Jones,  25  bbls.  Beef,  @  18.50;  25  bbls.  Flour,  @  9.25.     Receive  his  note  at  10  days, 

with  interest,  jiayable  at  City  Bank,  500.00.     Balance  on  «(r. 
Your  note  and  the  interest  upon  it,  7.75,  due  to-day,  has  been  charged  to  your  '^  at  College  Bank. 
Sell  for  cash,  10  bbls.  Pork,  @  10.50. 
Draw  cash  from  the  business  for  your  private  use,  50.00. 
Sell  Benj.  C.  Green,  15  bbls.  Beef,  @  18.50;  10  bbls.  Pork,  (^  10.25.     Receive  cash,  150.00,  and 

his  note  at  GO  days,  payable  at  Traders'  Bank,  for  balance. 
Give  White  Bro's  your  check  on  College  Bank,  to  apply  on  %  300.00. 
Sell  for  cash,  10  bbls.  Flour,  @  9.25;  5  bbls.  Pork,  @  10.25. 
Buy  of  White  Bro's,  on  %  25  bbls.  Beef,  @  17.25. 
Receive  cash  of  Jas.  Harris,  to  balance  ^,  300.00. 

Buy  of  Geo.  J.  Marsh,  on  your  note  at  25  days,  ])ayable  at  College  Bank,  50  bbls.  Pork,  @  15.00. 
R.  J.  Barton  has  compromised  with  his  creditors  at  25  ^.    Settle  his  «(?  on  that  basis,  receiving  cash. 
Pay  your  note  due  to-day  in  cash. 
Receive  cash  of  O.  W.  Jones,  on  «^,  222.50. 
Get  H.  A.  Strong's  note,  received  lltli  inst.,  discounted  at  College  Bank,  and  receive  cash  for  the 

proceeds.     (See  Note  2,  paije  89. ) 
Sell  D.  B.  Oliver,  on  %  20  bbls.  Pork,  @  10.25;  10  bbls.  Beef,  @  18.50. 
Receive  cash  for  a  note,  with  interest,  due  to-day. 
Pay  Salaries,  50.00,  and  Rent  of  Store,  50.00,  in  cash. 

INVENTORIES,  FEBRUARY   28.  188-. 

15  bbls.  Flour,  @  8.00;  40  bbls.  Pork,  @  15.00;  15  bbls.  Beef,  @  17.25. 
Office  Safe,  valued  at  cost. 

Balance  the  Cash  Book.  The  cash  on  hand  shouhl  be  2807.09.  In  posting,  give  Bank  account 
one-half  of  a  i)age  space;  other  accounts  one-fourth  of  a  i)age.  After  posting,  i)roceed  to  change  the 
books  to  Double  Entry,  according  to  the  instructions  given  in  the  i)revious  set  on  ])age  So.  The  State- 
ment should  show  a  Present  Worth  of  7534.94. 

After  the  necessary  steps  have  been  taken  to  change  the  Ledger  to  Double  Entry,  take  a  Trial 
Balance,  to  be  sure  that  your  Ledger  is  in  balance  before  proceeding  witii  Maicn  Conlinm-  tiie  use 
of  the  Bill  Book  and  Cash  Book  in  March,  using  the  Double  Entrv  form  of  Casli  Book. 


2. 

3. 

4. 

5. 

0. 

7. 

8. 

9. 
10. 
11. 
12. 

13. 
14. 


15. 

10. 
17. 

18. 
20. 
21. 
22. 
23. 


24. 


26. 
27. 

28. 


1. 


3. 


0. 


8. 


10. 


11. 


1  f^» 


13. 

15. 

10. 


18. 


21. 


23. 


24. 
20. 


THEORETICAL    AND    PRACTICAL    BOOKKEEPING. 


MARCH.  188-. 


91 


Admit  Geo.  H.  Whitney  and  W.  D.  Welch  as  equal  partners  in  the  business. 

Geo.  H.  Whitney  invests:     Cash,  0324.34;  A.  C.  Holden's  note,  dated  Jan.  7th  last,  at  CO  days, 

with  interest,  1200.00;  Interest  accrued  to  date. 
W.  D.  Welch  invests:     Cash,  0054.94;  a  note  made  bv  Bentlv  &  Gardner,  dated  Feb.  10th  last,  at 

7  7  %,  »t 

90  days,  1500.00;  Discount  to  maturity. 
Sell  for  cash,  15  bbls.  Flour,  @  9.25. 
Deposit  in  College  Bank,  cash,  12000.00. 

Buy  of  Clark  &  Co.,  300  bbls.  Beef,  @  17.25;  50  bbls.  Pork,  @  15.00.     Give  in  payment,  your 
'  note  at  10  days,  5175.00;  your  note  at  30  days,  750.00;  both  notes  payable  at  College  Bank, 

with  interest. 
Take  out  judicy  of  insurance  for  one  year  on  ]m)])erty  in  store,  10,000.00.     Pay  premium  at  U  '^ 

in  cash. 
Receive  cash  of  0.  W.  Jones,  on  ^c,  100.00. 
Sell  Redmond  Bro's,  Vienna,  25  bl)ls.  Pork,  @  10.25;  25  bbls.  Beef.  @  18.50.     Receive  in  jiayment, 

cash,  108.75;  their  note  at  20  days,  with  interest,  payable  at  First  Nati«mal  Bank,  Vienna, 

400.00.     Balance  on  "/c. 
Deposit  cash  in  College  Bank,  500,00. 
Buy  of  H.  A.  TrafTord,  House  and  Lot,  344  Plymouth  Ave.,  for  0000.00.     Assume  a  mortgage  on 

same  of  2000.00,  with  interest  accrued  from  Jan.  2  last,  03  days,  and  pay  him  the  balance  by 

check  on  College  Bank. 
Buy  500  bbls.  Flour,  @  8.00,  and  pay  for  same  by  check  on  College  Bank. 
Pay  White  Bro's,  to  ap])ly  on  <^,  B.  C.  Green's  note  rec'd  17th  ult.,  less  discount  to  maturity. 
Accept  a  draft  at  10  days'  sight,  drawn  on  W.  D.  AVelch  by  W.  T.  Owens,  for  his  jji-ivate  account, 

600.00. 
Pav  cash  for  Coal  for  office  use,  12.80. 

Receive  of  D.  B.  Oliver,  to  apply  on  "/c,  his  check  on  Merchants'  National  Bank,  310.00. 
Sell  0.  W.  Jones,  on  %  200  bbls.  Flour,  @  9.25;  100  bbls.  Beef,  @  18.50. 
A.  C.  Holden,  whose  note  Whitney  invested  and  guaranteed  its  payment,  has  compromised  with 

his  creditors  at  50  io.     Receive  cash  and  charge  the  deficiency  to  Whitney's  account. 
Deposit  in  College  Bank,  Oliver's  check,  rec'd  10th  inst. 
Pay  Hill  &  Co.  cash  to  balance  ^c. 
Receive  cash  of  0.  W.  Jones,  on  ^,  3543.75. 
Buy  of  Scott,  Seymour  k  Scott,  on  «(•,  250  bbls.  Pork,  @  15.00. 

Exchange  checks  with  Wm.  E.  Scott  for  his  accommodation.  500.00.    His  check  is  dated  10th  inst. 
Your  note  due  to-day,  with  interest,  has  been  charged  to  your  ^  at  College  Bank. 
Sell  for  cash,  100  bbls.  Beef,  @  18.50. 
Wm.  E.  Scott  being  unable  to  provide  for  the  check  rec'd  of  him  13th  inst.,  gives  you  his  note  at 

10  days,  with  interest,  endorsed  by  Morgan  &  Howe. 
Draw  a  draft  on  Redmond  Bro's  at  00  days,  for  200.00,  and  get  it  discounted  at  College  Bank. 

receiving  credit  for  the  proceeds. 
Sell  D.  B.  Oliver,  on  %  150  bbls.  Pork,  @  10.25;  100  bbls.  Flour,  @  ^^.25. 
Insure  the  House  Xo.  344  Plymouth  Ave.  for  4000.00,  at  \\i>,  for  one  year.     Pay  i»remium  in 

cash. 
Receive  of  0.  W.  Jones,  to  balance  <^,  his  note  at  GO  days  for  250.00. 
Accept  Scott,  Seymour  &  Scott's  draft  on  you  at  5  days'  sight,  i)ayable  at  College  Bank,  to  apply 

on  %  2000.00. 
Pay  an  accei)tance  due  to-day  in  cash. 

Your  note  due  to-day  has  been  charged  to  your  ^c  at  College  Bank. 
Student  and  Geo.  H.  Whitney  doubting  the  responsibility  of  0.  W.  Jcmes,  Avhose  note  the  firm 

holds,  W.  D.  Welch  offers  to  buy  the  note  at  75  ^  of  its  face,  which  otter  is  accepted.      Make 

an  entry  to  adjust  the  transaction. 
Pay  White  Bro's  cash  on  %  100.00. 
Buy  of  Geo.  J.  Marsh,  150  bbls.  Flour,  @  8.00;  50  bbls.  Beef,  @  17.25.     Give  him  your  note  at  00 

davs,  ])ayable  at  College  Bank,  for  500.00,  and  check  on  College  Bank  for  balance. 
Pay  cash  for  i)ermanent  rei)airs  and  im])rovenients  on  House  No.  344  Plymouth  Ave.,  575.00 
Receive  cash  for  a  note  due  to-day. 


IH 


THEORETICAL    AND    PRACTICAL    BOOKKEEPING. 

Deposit  cash  in  College  Bank,  5000.00. 
-      Clark  &  Co     ^v-ho  hold  your  note  for  750.00,  given  them  2d  inst,  offer  to  discount  25  00  and  the 

c^^     '"" ''''  ^"" ''  '''-'''•    ^^^^^'^ '''''  ^•'•'••-^•^^-^  -^  ^'^  ^J>-»  ^  ^^-^ - 

29.    Your  acceptance  due  to-day  has  heen  charged  to  your  ^  at  College  Bank 

Sell  the  House  and  Lot  No.  344  Plymoutli  Ave.  to  Jas.  W.  Fonda  for  G500.00.  In  addition  to  this 
pncc^  he  allows  you  for  the  permanent  repairs  and  improvements  paid  for  the  2(  t  inst  and 
also  f  7.O0  on  the  insurance  paid  18th  inst.  He  assumes  in  pavuK  nt  the  nu.rt<;.  o  2 (^nroo 
and  accrued  interest;  gives  you  his  check  on  Mechanics'  Savings  Bank  fo^^lO^  83  I  d  a 
mortgage  upon  the  property  for  the  halance.  ^i^^-^i,  ami  a 

Receive  cash  for  a  note  due  to-day. 
31.    Keceive  cash  of  1).  B.  Oliver,  to  halance  %  3562.50. 

Pay  Salaries  and  Kent  of  Store  in  cash,  loo.oo. 

Deposit  cash  in  College  Bank,  7000.00. 

INVENTORIES,    MARCH   31,   188-. 

MDSE  — 150  hhls.  Flour,  @  8.00;  140  l)hLs.  Beef,  @  17.25. 

EXPENSE— Insurance  unearned.  137.50;  Office  Safe,  valued  at  5  ^,  l)elow  cost. 

for  tltt^ti?  n-f  .V^^^^^^^^^^  Cash  on  hand,  1790.00.  Post  and  make  out  a  Balance  Sheet.  Net  Gain 
for  the  im.nth  l(.,4.9o  Close  the  Ledger  and  prove  the  halances  as  heretofore  instructed.  I'resent 
your  books  and  proof  of  the  balances  to  the  teacher  before  i)n»ceeding  with  the  next  set. 

QUESTIONS   FOR   REVIEW. 

Page  81.-'  What  is  the  distingnisliing  feature  of  Single  Entrv  hook-keeping?    'To  what  extent 

.8  It  necessary  to  record  business  transactions  in  Single  Entry?  "MVhat  ho<.ks  are  generallv  used? 

V\  hat  additiona   hooks  are  sometimes  employed?     Mn  Single  Entrv,  why  can  vou  not  show  in  detail 

your  gains  and  losses.''    •  How  do  you  determine  your  Net  (Jain  or  Net  Loss?   '^  When  will  the  results 

exnibit  a  Net  Loss?  • 

Page85.-«What  is  the  first  step  preparatory  to  changing  books  from  Single  to  Double  Entry? 
The  second  step?    --u  ^  ,,y  ^^^^^  ^j,^  p^.^^^^,^^^  ^^.^^^.^^^  ,^^  ^^^^^^^^^  ^^^^^^^^.^^  ^^^^  ^^^^  ^^^.^^  ^^^  ^^^^  ^^^^^^  ^^^^^  .^^ 

determined  ?  \\  hat  add.tmnal  accounts  is  it  necessary  to  open  to  change  the  Ledger  to  Double 
Entry?  AVhat  is  the  final  step  to  place  the  Ledger  in  halance?  "  Wiiy  is  the  Ledger  then  in  balance' 
Miscellaneous—From  what  sources  do  you  get  the  information  necessary  to  make  out  a  statement 
of  the  Resources  and  Liabilities?  Could  you  find  your  Net  Gain  or  Net  Loss  if  you  did  not  know  what 
you  were  worth  at  commencing?  Could  you  find  your  present  worth?  If  in  making  out  the  statement 
preparatory  to  changing  to  Double  Entry,  a  resource  should  be  omitted,  how  would  it  affect  the  Net 
bum.      VV  hat  entry  would  be  nuide  in  the  Double  Entry  books  to  correct  such  an  omission  •■' 


SPECIAL  COLUMN  JOURNAL. 


'  The  Special  Column  Journal  is  a  Journal  provided  with  special  or  separate  columns  for  those 
items  which  occur  most  frequently  in  the  business. 

■''  The  advantage  of  using  this  form  of  Journal  is  in  the  saving  of  time  and  labor  by  not  ]>osting  to 
the  accounts  the  separate  items  which  are  carried  to  the  special  columns,  'the  footings  only  of  these 
columns  being  posted  daily,  weekly  or  monthly,  as  desired. 

*  All  items  for  which  no  special  columns  are  provided  are  placed  in  the  General  or  Sundries 
column,  and  each  item  posted  sej)arately,  as  in  the  ordinary  Journal  form. 

In  the  form  illustrated  on  page  94  two  special  columns,  Cash  and  Mdse.,  are  used  on  each  side  of 
the  Journal.  *  The  number  of  special  columns  is  not  limited,  however.  *  Any  item  which  occurs 
with  sufficient  frequency,  either  upon  the  debit  or  credit  side,  to  make  it  desirable,  may  have  a  special 
column  })rovided  for  it.  In  many  kinds  of  business  it  is  desirable  to  i)rovide  a  special  column  for 
Expense  ui)on  the  debit  side  of  the  Journal. 

^  The  columns  are  to  be  footed  at  the  bottom  of  each  page,  and  proved  before  being  carried  forward 
to  the  next  page.  ®  The  sum  of  the  three  columns  upon  the  debit  side  of  the  Journal  must  equal  the 
sum  of  the  three  upon  the  credit  side. 

•  In  extending  the  amounts,  particular  care  must  be  exercised,  or  error?  will  be  made  by  extending 
amounts  to  the  wrong  columns.  "*""  The  Ledger  would  not  balance  if  a  special  column  item  were  by 
mistake  placed  in  the  Sundries  column,  or  a  Sundries  column  item  in  a  special  column,  because  in  the 
first  case  the  amount  would  be  omitted,  and  in  the  second  case  it  would  be  posted  twice. 

The  memoranda  of  the  preceding  three  months  are  used  in  illustrating  this  method. 

The  books  to  be  used  are  the  Special  Column  Journal,  Bill  Book  and  Ledger.  The  form  of  the 
Journal  is  illustrated  on  pages  94-98. 

Perform  the  work  from  the  memoranda,  however,  consulting  the  illustrations  only  when  necessarv. 

The  letters  J.,  C.  B.  and  B.  B.,  together  with  the  notes  given  in  the  memoranda,  apply  to  the 
Single  Entry  work,  and  are  not  to  be  observed  in  working  this  set. 


9? 


Tr 


'    . 


f    •♦ 


I 


94 


TUEUKETICAL    AND    PRACTICAL    BOOK-KEEPING. 


^ 

^ 


i^ 


•^o 


TIIEOREl'ICAL    AND     PRACTICAL    BOOK  KEEPING. 


^ 


^ 


\ 


i 


N 


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^ 


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1 


95 


\5 


*55 


\ 


96 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


97 


,  I 


JANUARY   3.   188- 


MD8E. 


1071) 


CASH. 


690 


38 


246 


SUNOKIES 


to 


65 


50 


1144 


50 


u: 


64 


1072 


77 


3113 
6 


08 
18 


L.r, 


12 


15 


01 


11 


Jas.  Jamiivson,  To  Mdsc. 

27  IJroadway. 

25  11)8.  A  Su^ar,  10c. , 
4   **    J.  Toa,  80c., 
2   **    R.  Coffee,  24c., 

5. 

Expense,  To  Cash, 

Clerk's  Salary. 

Cash,  '        To  Mdse. 

Sales  per  cash  drawer. 


Mrs.  E.  Smith,        To  Mdse. 
10  lbs.  B.  Sugar,  lOc, 
4i    "    Mackerel,  12c., 
2  Wood  l*ails,  25c., 


2.50 

3.20 

.48 


L.r 


BUNDRIBB. 


1 


.51 
.50 


25 


93 


6 


100 


3265 


11 


64 


» 


Cash, 


Mdse. 


To  Wm.  Johnson, 
Jas.  Janiieson, 
Rec'd  on  account. 


To  Bills  Payable, 
Bo't  of  11.  Gordon  &"Co.,  on 
note   as   per    B.  B.,  Invoice 
No.  4. 


18 


14 


Mrs.  E.  Smith,        To  Mdse. 
2  Wood  Pails,  22c., 
1  Bnxmi, 
1  lb.  R.  Coffee, 


.44 
.25 
.24 


f. 


50 


34 


1." 


1(1 


Cash,  To  Mdse. 

Sales  per  cash  drawer. 

8. 

Bills  Receivable,       To  A.  Thompson, 
Rec'd  note  on  f^,  per  B.  B. 


Wm.  Johnson,  To  Mdse. 

50  lbs.  B.  Sugar,  9^c.,  4.75 

1  Broom,  ,25 
5  lbs.  R.  Coffee,  24c.,  1.20 

2  Wood  Pails,  22c.,  .44 

Expense,  To  Cash, 

Coal  for  office. 

10. 

Smith,  P.  &  Co.,      To  Cash, 
Paid  on  <^. 


14 
12 


16 


14 


4619 


CASH. 


3 


65 


50 


2." 


4717150 


5 


6 


100 


111 


50 


50 


MDSE. 


263 

6 


46 

18 


24<; 


75 


01 


127 


93 


64 


6 


64 


653 


61 


JANUARY   10.   1  se- 


ll DSE. 


1144 
31 


50 
25 


96 


31 


1207 


25 


96 


CASH. 


1072 


77 


25 


SUNDRIES 


50 


25 


358 


1482 


40 


67| 


3265 


34 


75 


K 


50 


ur. 


150 


3  80 


25 


25 


3554 


64 


Mdse.  To  Geo.  F.  Doyle, 

Bo't  on  «/c,  i)er  Inv.  Hso.  5. 

Mdse.  To  Wm.  Johnson, 

4  lbs.  R.  Coffee  returned,  24c. 

11. 

A.  Thompson,  To  Mdse. 

Cash, 

10  bbls.  Salt,  1.40,  14. 

2  ch.  J.  Tea,  70  lbs.,  70c.,  49. 

3  bbls.  B.  Sugar,  375  lbs., 

lOc,  37.50 


R'H-*d  casli. 
i>ulance  on  ^c, 


25. 
75.50 


L.F. 


SUNDRIES, 


1        i 


Expense, 
Cash, 


12. 
To  Cash, 


» 


To  Mrs.  E.  Smith, 


Rec'd  on  «6. 

13 

Smith,  P.  &  Co.,      To  Cash, 

Bills  Payable, 
Paid  on  "/?,  cash,  50. 

Note  per  B.  B.,  100. 

Wm.  Joiinson,         To  Mdse. 

10  lbs.  A  Sugar,  lOc,  1. 

2    ''    J.  Tea,  85c.,  1.70 

5   '*    R.  Coffee,  22c.,  1.10 

14. 

Mdse.  To  Geo.  F.  Doyle, 

Bo't  on  '^c,  per  Inv.  No.  6. 


Cash,  To  Bills  Receivable, 

Rec'd  of  A.  Thoni})son,  for  liis 
note  due  to-day  per  B.  B. 


Casli,  To  Mdse. 

Sales  per  cash  drawer. 

15. 

Geo.  F.  Doyle,  To  Cash, 

Paid  his  sight  draft. 

Exi)ense,  To  Cash, 

Paid  Book-keeper's  salary. 


4717 
31 


50 
25 


9(: 


100 


31 


25 


4907 


50 


25 


46 


CASH. 


Ill 


50 


MDSE. 


653  61 


10 


50 


25 


25 


100 


50 


80 


358 


40 


221 


50 


111631 


' 


98 


' 


i 


' 


THEORETICAL    AND    PRACTICAL   BOOK  KEEPING. 


JANUARY    15.   188-. 


MDSE. 

CASH. 

SUNOKIBS. 

UF. 

L.V.i 

i 

! 

1 
8UNDRIR8. 

CASH. 

MD8E. 

1207 

90' 

1482 

07 

3554 
119 

04 
50 

Bills  Receivable,      To  A.  Thompson, 
Rec'd  his  note  i>er  B.  B.  to  bal- 
ance ('/c. 

4907 
119 

40! 
50 

221 

50 

1110 

31 

3 

75 

n 

Jas.  Jamieson,         To  Mdse. 

10  lbs.  B.  Sugar,  9^c.,           .95 
2    *'    J.  Tea,  80c.,             1.00 
5   "    R.  Coffe,  24c.,          1.20 

16. 

3 

75 

<;: 

300 

15 
10 

Bills  rayable,           To  Cash, 

*Paid  note  favor   Smith,  P.  & 
Co. 

Cash, 
Mdse. 

15 

10 

90 
50 
00 

52 

300 

50 

1207 

90 

1482 

3977 
1482 
1207 

89 
67 
90 

52 

5020 

521 

1120 

521 

1120 

00 

0008 

0068 

"  You  may  now  balance  the  Journal  as  illustrated  above,  and  post  the  foregoing  transactions. 
"Post  the  totals  only  of  Cash  and  Mdse.,  as  shown  by  the  footings  of  those  columns,  the  footings  on 
the  left  side  to  the  debit  and  the  footings  on  the  right  side  to  the  credit  of  those  accounts.  {See  Cash 
account  below.)  All  items  in  the  Sundries  columns  are  to  be  posted  separately,  as  in  the  ordinary 
Journal  form.  You  may  use  the  Ledger  Folio  (Ledger  i)agc)  instead  of  \/  to  check  the  posting  in  this 
set.     See  L.  F.  column,  page  96.     The  items  in  the  Sundries  columns  only,  require  checking. 

CASH. 


188- 
Jan. 


16 


Sundries, 


1482  I  07 


188- 
Jan. 


10 


Sundries, 


521 


50 


After  you  have  finished  posting,  take  a  Trial  Balance,  and  then  continue  the  same  form  of  Journal 
through  Jannarv.  At  the  end  of  January  balance  your  Journal,  as  illustrated  above,  post,  make  out  a 
Balance  Sheet  and  close  the  Ledger.  Your  results  should  agree  with  those  given  at  the  bottom  of 
page  88,  except  the  Net  Gain,  which  should  be  394.08. 

February  and  March  are  also  to  be  worked  by  this  method.  Balance  the  Journal  at  the  end  of 
February,  post,  make  out  a  Balance  Sheet,  and  close  the  accounts  showing  losses  and  gains.  Your 
results  should  agree  with  those  given  at  the  bottom  of  page  90.  At  the  end  of  March  make  Balance 
Sheet  and  close  the  Ledger,  and  present  your  books,  with  a  proof  of  the  balances,  to  the  teacher  for 
inspection. 

QUESTIONS  FOR  REVIEW. 

Page  93.— »  Describe  the  Special  Column  Journal.  '  What  is  the  advantage  of  its  use?  '  How  is 
this  advantage  secured?  *  What  disposition  is  made  of  items  for  which  no  special  columns  are  provided.-* 
'  Is  the  number  of  special  columns  limited?  •  Upon  what  does  the  opening  of  a  specuil  column  for  any 
particular  item  depend?  '  How  freciuently  are  the  items  to  be  footed  and  proved?  « H.)W  are  they  to 
be  proved?  •  What  error  is  to  be  particularly  guarded  against?  '»  What  would  be  the  effect  upon  the 
Ledger  if  a  special  column  item  were  extended  to  the  Sundries  column?  Why?  "  If  a  Sundries  column 
item  were  extended  to  a  special  column?     Why? 

Page  98.—"  How  is  the  Journal  balanced?     "  How  is  the  jmsting  done? 


METHOD  OF  BOOK-KEEPING 


ADAPTED  TO   THE   REQUIREMENTS   OF  THE 


EXECUTOR   OF  A  WILL. 


The  following  set  is  designed  to  illustrate  the  closing  up  of  the  estate  of  a  person  deceased  by  the 
Executor  of  the  Will.  The  Student  is  supposed  to  be  the  Executor,  and  will  act  as  the  personal 
representative  of  the  deceased.  He  will  take  possession  of  all  property  of  whatever  character,  and, 
after  discharging  all  liabilities,  will  divide  the  remainder  of  the  estate  among  the  legal  representatives 
of  the  deceased,  in  accordance  with  the  the  terms  of  the  Will. 

The  books  to  be  used  are  the  Journal  and  Ledger. 

99 


IF 


100 


m 


^ 
^ 


THEOUETICAL   AND    PRACTICAL    BOOK-KEEPING. 


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Cy-C'f>l<^^tf^  c^i^-  a^cTr<y  -Scr'Ut^rA 


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THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


101 


APRIL.   188-. 

1.  You  (Student)  have  been  appointed  Executor  of  the  Will  of  the  late  John  H.  Warner.     The  Will 

provides  that  the  widow  of  deceased,  Eliza  St.  Clair  Warner,  shall  have  one-third  of  all 
property  belonging  to  the  estate,  and  that  the  children,  viz:  John  W.,  Mrs.  Mary  Warner 
Roberts,  William  H.,  Jennie  E.  and  George  S.,  shall  each  receive  one-fifth  of  the  remainder 
of  such  property. 

A  schedule  of  the  real  and  personal  estate  of  the  deceased,  made  by  yourself,  assisted  by  Cornelius 
Crittenden  and  Byron  Rogers,  as  ai)praisers,  exhil)its  as  follows  (.sw  entry  on  page  100): 

125  acres  of  land,  including  buildings,  constituting  the  Homestead,  @  90.00  per  acre;  80  acres  of 
land  in  Michigan,  @  15.00;  100  Sheep,  @  2.50;  4  Work  Horses,  100.00  each;  2  Yearling  Colts, 
40.00  each;  6  Cows,  30.00  each;  5  Hogs,  6.00  each;  Poultry,  estimated  at  25.00;  Harness, 
estimated  at  100.00;  Machinery  and  Utensils,  estimated  at  450.00;  Carriage,  estimated  at 
100.00;  Household  Furniture,  estimated  at  600.00;  Judgment  against  D.  Gray,  dated  Jan. 
IGth  last,  74.89;  Interest  accrued  75  days  on  above;  12  Water  Works  G  ^  Bonds,  500.00  each 
at  par;  Interest  accrued  on  same  from  Jan.  1  last,  3  months;  Note  of  W.  S.  Dunn,  at  90  days 
from  March  1  last,  with  interest,  1500.00;  Interest  accrued  31  days  on  above  note;  Note  of 
A.  B.  Enoch,  at  90  days  from  Feb.  20  last,  with  interest,  225.00;  Interest  accrued  40  days  on 
above  note;  John  Lynch  owes  on  «(;,  40.00;  William  Burke  owes  on  «^,  23.50;  Cash  on  hand, 
125.00;  On  deposit  in  Citizens'  Savings  Bank,  980.00;  Interest  accrued  on  above  deposit  from 
Jan.  1  last,  3  months,  at  5  ^  per  annum. 

2.  You  have  ascertained  that  deceased  was  i  idebted  to  the  following  persons  in  the  sums  named: 

James  Bryant,  on  account  of  Blacksmithing,  43.50;  A.  B.  Enoch,  Store  account,  79.80; 
Patrick  Maloy,  on  account  of  Ditching,  16.25. 

3.  Deposit  in  Germania  Bank,  cash,  125.00. 

4.  Sell  this  day,  at  auction,  the  following  personal  property:     100  Sheep,  @  2.85  per  head,  to  John 

Martin,  on  his  note  at  3  mos.  Avith  interest,  endorsed  by  Byron  Devins,  payable  at  Germania 
Bank;  2  Work  Horses,  94.00  and  140.00,  to  Wm.  Gray,  on  his  note  at  3  mos.  with  interest, 
endorsed  by  John  H.  Bly,  payable  at  Germania  Bank;  2  Work  Horses,  102.50  and  110.00,  to 
Jerome  B.  Stevenson  for  cash;  2  Yearling  Colts,  34.00  and  48.00,  to  William  Fenner,  on  his 
note  at  3  mos.  with  interest,  endorsed  by  Calvin  Davis,  payable  at  Germania  Bank;  2  Cows, 
28.50  and  31.00,  to  Ira  McCall  for  cash';  4  Cows,  34.00,  33.00,  29.75  and  41.00,  to  William 
Chappoll,  on  his  note  at  3  mos.  with  interest,  endorsed  by  Thos.  Eddy,  payable  at  Germania 
Bank;  5  Hogs,  @  4.50  each,  to  Samuel  N.  Messncr  for  cash;  Poultry,  to  Anson  H.  Wells  for 
cash,  24.00. 
Harness,  to  Patrick  Murphy,  on  his  note  at  3  mos.  with  interest,  endorsed  l)y  M.  B.  Flynn,  payable 
at  Germania  Bank,  for  88.00;  Carriage,  to  Owen  Storrs  for  cash,  98.00;  Farming  Utensils, 
bought  by  John  AV.  Warner  and  charged  to  his  account,  415.00;  Household  Furniture,  bought 
by  the  widow  of  deceased  and  charged  to  her  account,  588.50. 

5.  Deposit  in  Germania  Bank,  cash,  416.50. 

6.  Pay  Jas.  Bryant  and  P.  Maloy  in  full  of  account,  by  check  on  Germania  Bank.  ^ 

9.    A.  B.  Enoch  pays  his  note  and  interest  to  date  in  cash,  after  deducting  the  amount  due  him  on  <^. 
10.    Pay  Probate  Judge's  fee,  50.00,  and  Auctioneer's  bill,  15.00,  by  check  on  Germania  Bank. 
Patrick  Murphy  offers  to  pay  his  note  at  its  face,  which  offer  you  accept. 

16.  Sell  the  AVater  AVorks  Bonds  to  D.  \\.  Powers  for  cash  at  par,  with  accrued  interest  added. 
Dei)osit  in  Germania  Bank,  cash,  6340.00. 

17.  Collect  amounts  due  from  John  Lynch  and  Wm.  Burke,  in  cash. 

18.  Wm.  H.  Warner  desiring  to  purchase  the  80  acres  of  Michigan  land  at  the  ai)i)raised  valuation,  it 

has  been  deeded  to  him  and  charged  to  his  account. 

19.  Have  the  following  interest  bearing  notes  discounted  at  Germania  Bank,  at  8  i  discount,  and  have 

the  proceeds  credited:  John  Martin's  note,  285.00;  Wm.  Gray's  note,  234.00;  Wm.  Fenuer's 
note,  82.00;  Wm.  Chappell's  note,  137.75. 

Note— Get  tlie  interest  on  the  face  of  the  notes  from  their  date  to  maturity  at  6  per  cent.,  and  then  discount  the 
amount  at  8  per  cent,  for  the  time  the  notes  have  yet  to  run,  2  mo.  18  days. 

20.  Mrs.  Mary  AVarner  Roberts  takes  the  note  of  AVm.  S.  Dunn  at  its  face,  with  accrued  interest,  to 

apply  upon  her  share  in  the  estate. 
Draw  amount  on  dejwsit  in   Citizens'  Savings  Bank,  and  deposit  it,  together  with  the  accrued 
interest,  in  Germania  Bank. 


102 


THEORETICAL   AND    PRACTICAL    BOOK-KEEPING. 


>  • 


I   ; 


I 


21.    Pay  Jennie  E.  Warner  cash,  50.00. 

23.    John  W.  Warner  lias  determined  to  purchase  tlie  liomestead  farm  at  the  appraised  valuation.    You 
Avill  charge  it  to  his  account.     Papers  are  to  be  executed  on  the  20th  inst. 

26.  Messrs.   Rowley  &  Johnston,  attorneys,  have  returned  the  amount  collected  on  the  judgment 

against  D.   Gray,  74.89,  and  interest  to  date,  less  their  charge  for  collection,  10.00,  and 
Sheriff's  fees,  5. 75.     Receive  balance  in  cash.  ' 

27.  Deposit  in  Germania  Bank,  cash,  73.89. 

Note. — You  may  now  post  and  take  a  Trial  Balance  (not  Balance  Sheet),  after  which  close  the  accounts  showing 
losses  and  gains  directly  into  the  Warner  Estate  account. 

28.  Appropriate,  by  check  on  Germania  Bank,  your  fee  as  Executor  of  the  Will,  as  provided  by  law, 

viz:  5  ^  on  the  first  1000.00,  2^  ^  on  the  next  9000.00,  and  1  ^  on  the  balance  of  the  net  credit 
to  the  estate,  23,798.98,  not  counting  the  liabilities  or  expenses.     {Debit  Warner  Estate  for 
the  fees. ) 
Note. — Post  the  above  entry  and  each  entry  hereafter  as  soon  as  it  is  journalized. 

Having  ascertained  the  present  worth  of  the  estate,  as  shown  by  the  difference  in  the  Warner 
Estate  account,  debit  the  Estate  and  credit  Mrs.  Eliza  S.  Warner  her  one-third,  7721.89, 
and  the  children,  John  W.  Warner,  Mrs.  Mary  Warner  Roberts,  Wm.  II.  Warner,  Jennie  E. 
Warner  and  Geo.  S.  Warner,  each  one-fifth  of  the  remainder,  as  provided  by  the  Will. 

29.  John  W.  Warner  has  this  day  executed  a  mortgage  on  the  homestead  farm  for  the  balance  due 

Mrs.  Eliza  S.  Warner  from  the  estate. 
John  W.  Warner  has  executed  a  second  mortgage  on  the  homestead  to  Jennie  E.  Warner,  for  the 
balance  due  from  him  to  the  estate. 

30.  Give  Mrs.  Roberts,  Wm.  II.  Warner,  Jennie  E.  Warner  and  George  S.  Warner  checks  on  Germania 

Bank,  for  amounts  due  them. 

Note. — All  of  the  accounts  in  your  Ledger  should  now  balance. 

QUESTIONS   FOR    REVIEW. 

What  does  the  foregoing  set  illustrate?  IIow  is  an  Executor  appointed?  What  are  his  duties? 
How  are  his  fees  computed?  How  is  the  amount  found  upon  which  they  are  computed?  Why  will 
every  account  balance  at  the  close? 


PETTY    LEDGER. 


'  The  following  set  is  designed  to  illustrate  a  method  of  book-keeping  by  which  all  transient 
accounts  may  be  kept  without  opening  them  in  the  principal  Ledger. 

» An  auxiliary  Ledger,  called  the  Petty  Ledger,  is  employed,  in  which  all  accounts  are  opened  that 
are  not  likely  to  be  permanent,  active  accounts;  and  in  the  principal  or  main  Ledger  an  account  called 
Petty  Accounts  is  opened,  to  represent  these  transient  accounts  and  to  keep  the  main  Ledger  in 

balance. 

'  This  method  saves  space  in,  and  facilitates  taking  a  trial  balance  of,  the  main  Ledger. 

The  books  to  be  used  are  the  Journal,  Cash  Book,  Bill  Book,  Petty  Ledger  and  Main  ledger. 

108 


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THEOKETICAL   AND    PRACTICAL    BOOK-KEEPING. 


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THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


105 


MAY,   188-. 

Note. — *  The  form  of  Journal  illustrated  on  page  104.  you  will  observe,  is  provided  with  an  additional  column,  in 
which  the  sales  of  Mdse.  only  are  to  be  entered,  the  object  being  to  facilitate  posting.  The  footings  of  this 
column  are  to  be  carried  forward  from  page  to  page  until  the  end  of  the  month,  and  the  total  then  posted  to  the 
credit  of  Mdse.  account.     Rule  the  additional  column  in  your  Journal,  if  it  is  lacking. 

1.  Commence  the  Book  and  Stationery  business  with  tlie  following  Resources  :     Cash  on  hand. 

1000.00;  Furniture  and  Fixtures,  valued  at  200.00;  E.  W.  Hoag,  City  (J/.  Z.),  owes  on  <^, 
350.00.     (/.  and  C.  B.) 

Note. — Accoiints  which  are  to  be  opened  in  the  Petty  Ledger  will  be  indicated  in  the  memoranda  by  the  letters 
P.  L.,  and  those  to  be  opened  in  the  Main  Ledger  by  the  letters  M.  L. 

2.  Receive  from  Fletcher  &  Co.,  New  York  (J/.  Z.),  a  bill  of  Mdse.  bought  on  <^,  as  per  Invoice  No. 

1,  648.80.     (/.) 
Sell  R.  C.  Sidway,  Lakeville  {M.  L.),  2  doz.  Robinson  Arithmetic,  @  10.00  doz. ;    U  doz.  Kerl's 
Grammar,  @  9.00.     (J.) 

3.  Sell  G.  W.  Getman,  City  (P.  Z.),  G  R.  Arithmetic,  @  90c.;  3  Civil  Government,  @  1.00.    (/.  and 

P.  L.) 

Note. — Open  an  account  with  Getman  in  the  Petty  Ledger  before  making  the  journal  entry.  See  form  on  page  106. 
As  a  matter  of  convenience  the  items  are  entered  in  the  Petty  Ledger  and  omitted  from  the  Journal. 

4.  Receive  cash  of  E.  W.  Hoag  on  <^c,  100.00.     (/.  and  C.  B.) 

5.  Sell  R.  D.  Brown,  on  his  note  at  10  days,  20  High  School  Dictionary,  @  2.25.     {J.  and  B.  B.) 
Receive  cash  of  G.  AV.  Getman,  to  a})ply  on  <^c,  5.00.     (/.,  C.  B.  and  P.  Z. ) 

6.  Cash  sales,  as  per  Cash  Drawer,  28.12.     (/.  and  C.  B.) 

7.  Give  Fletcher  &  Co.  your  note  at  15  days,  to  apply  on  "/c,  175.00.     (J.  and  B.  B.) 

Sell  Marsh  &  Grant,  Fairport  {P.  Z.),  10  R.  Arithmetic,  @  90c.;  10  K.  Grammar,  @  75e.;  3 
Knight's  Commercial  Law,  @  2.75. 

Note. — Make  the  entry  first  in  the  P.  L.     Give  each  account  in  the  Petty  Ledger  one-fourth  of  a  page  space. 

9.    Receive  of  Barnes  &  Co.,  Boston  (JZ  Z.),  a  bill  of  Mdse.  bought  on  ^,  as  i)er  Invoice  No.  2, 
520.25. 

10.  Sell  Atkinson  &  Boyd,  Eastport  (M.  Z.),  10  reams  Foolscap,  @  2.25;  25  M.  Buff  Envelopes,  (a>,  l.GO. 
Receive  cash  of  R.  C.  Sidway  on  ^c,  15.00. 

11.  Open  an  account  at  City  Bank  and  deposit  cash,  500.00. 

12.  Give  Fletcher  &  Co.  your  check  on  City  Bank,  to  apply  on  ^c,  350.00. 

13.  Cash  sales  of  Mdse.,  as  per  Cash  Drawer,  36.04. 

15.    Give  Barnes  &  Co.  your  check  on  City  Bank,  to  apply  on  ^,  100.00. 

17.  Receive  cash  of  Marsh  &  Grant,  to  apply  on  «(■,  10.00.     (/.,  C.  B.  and  P.  Z.) 

Sell  R.  C.  Sidway,  15  Civ.  Gov.,  @  1.00;  10  H.  S.  Dictionary,  (^  2.25;  25  gro.  D.  Pencils,  @  1.75. 

18.  Receive  cash  for  a  note  due  to-day. 

20.  Accept  Fletcher  &  Co.'s  draft  on  you  at  10  days,  to  apply  on  <^c,  50.00. 

21.  Sell  L.  Ayrault,  Nunda  (P.  Z.),  20  reams  Foolscap,  ^  2.25;  25  M.  White  Envelopes,  @  1.75. 

22.  Buy  for  cash  a  draft  of  200.00  on  Ninth  National  Bank,  Boston,  at:J^  exchange.     Remit  the 

draft  to  Barnes  &  Co.,  to  apply  on  «(;. 

23.  Receive  of  Atkinson  &  Boyd,  to  apply  on  ^c,  their  draft  at  1   day's  sight  on   Marcus  Greenfield. 

which  Greenfield  has  accepted,  35. 00. 

24.  Sell  L.  &  G.  Freeman,  City  (P.  Z.),  25  M.  B.  Envelopes,  @  1.60;  10  reams  Foolscap,  @  2.25. 

25.  Pay  your  note  due  to-day  in  cash. 

26.  Draw  a  draft  at  sight  on  L.  Ayrault,  Nunda,  to  apply  on  ^c,  50.00,  and  deposit  tlie  draft  in  City 

Bank  to  your  credit,  less  cost  of  collectiou,  25c.     (/.  and  P.  Z. ) 
Buy  of  AValker,  Clinch  &  Co.,  City  {M.  Z.),  Mdse.  as  per  Invoice  No.  3,  462.38.     Give  them  your 
check  on  City  Bank,  62.38.     Balance  on  ^c. 

27.  Receive  cash  for  an  acceptance  due  to-day. 

28.  Sell  Atkinson  &  Boyd,  10  K.  Commercial  Law,  @  2.75;   20  R.  Arithmetic,  @  90c.;   15  H.  S. 

Dictionary,  @  2.25.     Receive  in  payment,  their  note  at  15  days,  50.00.      Balance  on  ^. 

29.  Receive  cash  of  Marsh  &  Grant,  to  balance  ^c. 

30.  Deposit  in  City  Bank,  cash,  300.00. 

Sell  J.  J.  Sidway,  Canton  {P.  Z.),  40  gro.  Steel  Pens,  @  1.45;  25  gro.  1).  Pencils,  @  1.75. 

31.  Credit  D.  W.  Clark,  Book-keeper  (/*.  L.),  lii.s  salary  for  the  iiKmth,  50.00. 


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106 


THEORETICAL  AND  PRACTICAL  BOOK  KEEPING. 

FORM  OF  PETTY  LEDGER  ACCOUNTS. 

G.  W.  GETMAN,  City. 


188- 
May 


G  Rob.  Aritli.,  90c. 

3  Civ.  Cov't,  1.00 


188- 

j 

5 

40 

May 

5 

3 

■ 

4  0 

Cash, 


MARSH  &.  GRANT.  Fairport. 


188- 
May 


10  Rob.  Arith.,         90c. 

10  K.  (irammar,       75c. 

3  K.  Com'l  Law,    2.75 


188- 

9 

May 

17 

7 

50 

29 



8 

25 

75 

• 

24 

L.  AYRAULT.   Nunda. 


188- 
May 


21    20  rms.  Foolscap,      2.25 
25  M.  W.  En  v.,         1.75 


i 

II 

188- 

45 

May 

27 

43 

75 

•  s 

7» 

Draft, 


50 


L  &  G.  FREEMAN.  City. 


188- 
Mav 


24 


20  M.  B.  Env.,  l.GO 

10  rms.  Foolscap,     2.25 


40 

22 

50 

0  a 

so 

INVENTORIES,   MAY  31,  188-. 

MERCHANDISE. — Per  Inventory  Book, 1203  88 

EXPENSE. — Furniture  and  Fixtures, 200  00 

You  may  now  balance  the  Cash  Book  and  post  the  montli's  business,  giving  each  account  one-fourth 

of  a  page  space,  except  Petty  Accounts,  wliich  will  re(juire  one-half  of  a  i)age.     Post  the  footing  only 

of  the  Mdse.  Sales  column  to  the  credit  of  Merchandise  account,  an.l  the  footings  of  the  Cash  Book  to 

the  Cash  account,  as  heretofore  instructed,  omitting  to  post  the  c^-edit  items  of  Mdse.  and  the  Cash 

items  in  posting  from  the  Journal. 

After  you  have  completed  the  posting,  prove  first  the  Petty  Ledger,  as  explained  and  illustrated 
below. 

The  Petty  Ledger  does  not  balance,  but  may  be  proved  as  follows:  *  Find  the  difference  between 
the  sides  of  the  Petty  Ledger,  and  compare  it  with  the  difference  between  the  sides  of  the  account 
with  Petty  Accounts,  in  the  Main  Ledger;  the  two  differences  should  agree. 

•  The  reason  of  this  is  obvious,  since  for  every  entry  made  in  the  Petty  Ledger  a  corresponding 
amount  was  entered  to  the  same  side  of  the  account  with  Petty  Accounts  in  the  Main  Ledger. 

PETTY   LEDGER,   MAY  31,  188-. 


1 
1 
1 
1 

o 


G.  W.  Getman, 
L.  Ayrault, 
L.  &  G.  Freeman, 
J.  J.  Sidvvav, 
D.  W.  Clark, 


PROOF. 


8 

88 

62 

101 


J61 


40 
75 
50 

75 


40 


5 
50 


50 


105 


Petty  Accounts,  Dr 286  15 

Cr 129  75 


it 


a 


Balance, 156  40 


Petty  Ledger,  Dr. 
Cr. 


(< 


(i 


261  40 
105  00 


Balance, 156  40 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


107 


After  proving  the  Petty  Ledger,  make  out  a  Balance  Sheet  from  the  Main  Ledger,  and  close  the 
accounts  showing  losses  and  gains,  preparatory  to  taking  a  partner  June  1st.  The  results  shown  by 
your  Balance  Sheet  should  be  as  follows: 

SUMMARY,    MAY  31,  188-. 


Total  Resources, 2467  56 

**      Liabilities, 750  05 


Present  Worth, 1717  51 


Total  Gains, 218  26 

"     Losses, 50  75 


Net  Gain, 167  51 


75c. :  5  reams 


JUNE.   188-. 

1.  Admit  F.  E.  Craigie  as  a  partner,  with  a  cash  investment  equal  to  your  present  worth. 

2.  Sell  Baker  Bro's,  Ridgeway  {P.  L.)  5  Rob.  Arithmetic,  @  90c.;  10  K.  Grammar, 

Foolscap,  @  2.25. 
Deposit  in  City  Bank,  cash,  1500.00. 
Pay  your  acceptance  due  to-day  in  cash. 

3.  Receive  R.  C.  Sidway's  check  on  Farmers'  Bank,  Lakeville,  to  balance  his  ^. 

4.  Sell  W.  &  E.  Palmer,  Havana  {P.  L.),  25  M.  White  Envelopes,  @  1.75;  25  Civ.  Government,  @ 

1.00;  20  gro.  D.  Pencils,  @  1.75. 
Deposit  Sidway's  check  rec'd  3d  inst.  in  City  Bank,  less  collection,  25c. 

5.  Receive  cash  of  L.  &  G.  Freeman  in  full  of  <^. 

6.  Pay  D.  W.  Clark,  Book-keeper,  cash  to  apply  on  last  month's  salary,  25.00. 

Note. — Debit  Petty  Accounts  instead  of  Expense.     See  entr}'  May  31. 

7.  Sell  G.  W.  Getman,  20  M.  Buff  Envelopes,  @  1.60;  15  H.  S.  Dictionary,  @  2.25;  10  Com.  Law, 

@  2. 75. 

8.  Receive  from  Fletcher  &  Co.,  New  York,  a  bill  of  Mdse.  bought  on  ^  per  Inv.  No.  4,  268.60. 

9.  Cash  sales,  i)cr  Cash  Drawer,  52.94. 

10.  The  draft  drawn  on  L.  Ayrault,  May  26,  has  been  returned  unpaid.     Protest  fees,  1.25.     Give 

City  Bank  your  check  to  take  up  the  draft,  51.25. 

Note. — Charge  the  fees  to  Ayrault,  it  having  been  agreed  that  you  should  draw  upon  him  at  that  time. 

11.  Receive  cash  of  E.  W.  Hoag  on  <^c,  150.00. 

Give  Walker,  Clinch  &  Co.,  your  note  at  10  days,  payable  at  City  Bank,  to  apply  on  ^,  200.00. 

13.  Sell  R.  C.  Sidway,  500  gro.  Crayon,  @  lie;  50  reams  Letter  Paper,  @  2.10. 
Deposit  cash  in  City  Bank,  250.00. 

14.  Receive  cash  of  G.  W.  Getman  on  ^c,  25.00. 

Sell  R.  W.  Howard,  Bluff  Point  {P.  L.),  10  Com.  Law,  @  2.75;   15  M.  Buff  Envelopes,  @  1.60; 
12  K.  Grammar,  @  75c. 

15.  Receive  cash  for  a  note  due  to-day. 
Cash  sales,  per  Cash  Drawer,  21.50. 

16.  Sell  G.  W.  Getman,  10  reams  Letter  Paper,  @  2.10;  200  gro.  Crayon,  @  lie. 

Buy  of  Walker,  Clinch  &  Co.,  Mdse.  per  Invoice  No.  5,  689.32.     Give  them  in  payment,  check  on 
City  Bank,  289.32:  your  note  at  60  days  for  balance,  payable  at  City  Bank. 

17.  Receive  from  Baker  Bro's,  a  Postal  Money  Order,  to  apply  on  «/c,  10.00. 

18.  Buy  at  City  Bank,  by  check,  a  draft  on  the  Ninth  National  Bank  of  Boston,  226.25,  at  ^  ^ 

exchange,  and  remit  the  draft  to  Barnes  &  Co.,  to  balance  ^. 

19.  Transfer  G.  W.  Getman's  account  to  the  Main  Ledger,  it  having  proved  to  be  a  ]H'nnanent  and 

active  account. 

Note — 'Close  the  account  in  the  P.  L.     Say,  on  the  credit  side.  Bal.  to  M.  L.     Then  make  an  entry  in  the  Journal: 
G.  W.  Getman,  To  Petty  Accounts. 

20.  Receive  of  Atkinson  &  Boyd,  their  note  at  45  days,  to  balance  <^,  56.75. 
Buy  of  Stein  &  Co.,  City  {P.  L.),  one  Show  Case  for  Store,  35.00. 

21.  Receive  from  W.  &  E.  Palmer,  to  ai)ply  on  ^jc,  their  sight  draft  for  50.00  on  Farley  &  Ferguson. 

which  F.  &  F.  pay  by  their  check  on  Commercial  Bank. 
Sell  Findley  &  Morris,  Groveland  {P.  L.),  5  gro.  Steel  Pens,  @  1.45;   10  R.  Arithmetic,  (4  iH>c. 

22.  Student  draws  cash  for  private  use,  50.00. 


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108 


THEOKETIOAL    AND    PRACTICAL  BOOK-KEEPING. 


22. 
23. 
24. 


25. 

26. 
27. 

28. 
29. 
30. 


Sell  Atkinson  &  Boyd,  25  K.  Com.  Law,  @  2.75. 

Receive  cash  of  L.  Ayrault  to  balance  <^,  90.00. 

Your  note  due  to-day  at  City  Bank  has  been  charged  to  your  account. 

D.  W.  Clark  draws  balance  of  last  mouth's  salary  in  cash,  25.00. 

Receive  from  Barnes  &  Co.,  a  bill  of  Mdse  bought  on  <^,  per  Invoice  No.  6,  822.48. 

Sell  Alfred  Carter,  Newport  {P.  L.),  20  reams  Letter  Paper,  @  2.10;  25  M.  White  Envelopes,  @ 

1.75.      Receive  in  })ayment,  cash,  45.00.     Balance  on  <^. 
Receive  cash  of  J.  J.  Sid  way  on  «/c,  58.00. 

Sell  Frank  Siddons,  City  {P.  L.),  1  Com.  Law,  3.00;  1  R.  Arithmetic,  1.00. 
Pay  Fletcher  &  Co.'s  sight  draft  on  you  by  check  on  City  Bank,  73.80. 
Sell  G.  W.  Getmau  (J/.  L.),  25  Civ.  Government,  @  1.00;  10  Com.  I^w,  (^  P,.75. 
F.  E.  Craigie  draws  for  }>rivate  use,  by  check  on  City  Bank,  50.00. 
Give  D.  W.  Clark  creilit  for  his  mouth's  salary,  50.00. 


INVENTORIES,  JUNE   30,  188-. 

MERCH AN Dl SE  — Per  Inventory  Book, 2452  38 

EXPENSE— Furniture  and  Fixtures, 235  00 

Close  your  Cash  Book  and  ])()st  the  month's  business.  Remember  that  the  footings  only  of  the 
Cash  Book  and  of  the  Mdse.  Sales  column  need  be  })osted.  After  you  have  comj)leted  the  })()sting, 
prove  the  Petty  Ledger,  as  instructed  for  last  month.  The  accounts  in  the  Petty  Ledger  need  not  be 
closed.     Make  out  a  Balance  Sheet  and  close  the  accounts  in  the  Main  I^Mlger. 

Net  (Jain  for  the  month, 202  72 

Balance  of  Petty  Accounts 147  25 

"Another  method  of  kee})ing  transient  accounts  is  to  open  in  the  Main  Ledger  an  account  called 
''Miscellaneous  Accounts,"  or  some  other  appropriate  title,  under  which  all  accounts  not  likely  to  be 
permanent,  active  accounts  may  be  placed,  instead  of  keeping  them  in  a  Petty  I^'dger,  as  illustrated 
below. 

MISCELLANEOUS  ACCOUNTS. 


188- 

Mav 

3 

* 

r- 

< 

21 

24 

27 

30 

G.  W.  Getman, 
Marsh  &  Grant, 
h.  Avrault, 
L.  &  G.  Freeman, 
L.  Ayrault,  Bal. 
J.  J.  Sidway, 


188- 

8 

40 

May 

5 

24 

75 

it 

17 

88 

75 

(( 

27 

62 

50 

38 

75 

101 

75 

June 

26 

Cash,  5. 

(^ash,  10;  Mav  29,  14.75 

Draft,  50;  Bal  38.75 


Cash, 


24 

88 


58 


75 

75 


'  You  will  observe  by  the  above  form  that  the  s})ace  occupied  by  each  account  is  one  line  only. 
'"When  an  account  is  settled,  the  credit  is  entered  on  the  line  directly  opposite  the  debit,  thus  showing 
the  account  balanced.  "  When  an  account  is  not  ])aid  in  full  at  one  j)ayment,  the  account  mav  be 
closed  and  the  balance  unpaid  transferred  to  a  new  line,  or  the  })ayments  may  be  short  extended,  as 
shown  above.  It  is  sometimes  desirable  to  keep  "Misc.  Accounts  Receivable"  and  '*  Misc.  Accounts 
Pavable." 

Hand  to  the  teacher,  on  a  slij)  of  ])a])er,  a  i)roof  of  the  balances  brought  down  in  closing  the 
Ledger;  also  present  your  books  for  inspection. 

QUESTIONS  FOR  REVIEW. 

Page  103. — 'What  does  the  Petty  Ledger  set  illustrate?  *  Describe  the  method.  '  What  are  the 
advantages  to  be  derived  from  its  use? 

Page  105. — *  What  advantage  is  derived  in  this  set  from  using  an  additional  column  for  Mdse.  sales? 

Page  106. — *  ILnv  is  the  Petty  Ledger  proved?    •  Explain  the  reason  for  it. 

Page  107. — ^  What  entry  is  made  to  transfer  an  account  from  the  Petty  [jcdger  to  the  Main  Ledger? 

Page  108. — *What  other  form  may  bo  used  for  keei)ing  transient  accounts  to  save  s])ace  in  the 
Main  Ledger?  '  By  this  form,  how  much  8})ace  does  each  transient  account  octai|)y?  '"  Wiien  an  account 
IS  settled,  where  is  the  credit  entry  made?  "  If  au  account  is  not  paid  in  full  at  one  payment,  how  is 
the  entry  made? 


CASH    METHOD. 


'  The  methof"  illustrated  in  the  following  set  combines  the  Day  Book,  Journal  and  Cash  Book  in 
one  book,  called  the  Cash  Journal,  or  simply  Journal,  in  which  book  all  entries  are  to  be  made,  whether 
cash  forms  any  part  of  the  transaction  or  not. 

'  This  form  of  book-keeping  is  best  adapted  to  a  business  in  which  the  transactions  are  mainly  for 
cash. 

•The  principal  advantages  of  the  method  are,  that  it  employs  a  less  number  of  books,  and  saves 

time  and  labor  in  posting  cash. 

RULES  FOR  CASH   METHOD. 

Decide  Avhat  the  journal  entry  would  be  for  the  transaction  in  the  ordinary  form,  then: 

First.—*  If  Cash  be  the  only  debit,  enter  all  of  the  credit  items  on  the  left  side,  which  debits 
Cash. 

Second.—''  If  Cash  be  the  only  credit,  enter  all  of  the  debit  items  on  the  right  side,  which  credits 
Cash. 

Third. — ^  If  the  entry  consists  of  several  debits  and  credits,  one  of  which  is  Cash,  leaving  out  the 
Cash,  enter  all  the  debits  on  the  right  side,  which  credits  Cash,  and  enter  all  the  credits  on  the  left 
side,  which  debits  Cash.     The  difference  will  show  the  cash  received  or  paid  out. 

Fourth. — '  If  no  Cash  is  involved  in  the  transaction,  enter  the  credits  on  the  left  side  and  the 
debits  on  the  right  side.  The  footings  of  the  two  sides  will  thus  be  increased  ecpially,  and  the  balance 
of  cash  will  remain  unchanged. 

The  books  to  be  used  in  this  set  are  the  Cash  Journal  and  Ledger. 

109 


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11 


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THEORETICAL    AND    PKACTICAL    BOOKKEEPIJSO. 


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112 


TUEORETICAL    AND    PRACTICAL    BOOK  KEEPING. 


MONDAY,  JULY  5,  188-. 

Student  and  E.  A.  Wooden  form  a  copartnerslii])  to  en<?aj]fe  in  business  as  private  Bankers  and 
Brokers,  in  accordance  with  coi)artnershi})  articles  executed  this  day.  The  gains  and  losses  are  to  bo 
shared  in  ])ro{)ortion  to  tlie  investment. 

Student  invests  cash,  20,000. 

Make  the  entrj'  on  the  Uft  side  of  the  Journal,  which  credits  Student  and  debits  Cash.     See  fomi  on  page  110. 

E.  A.  Wooden  invests  cash,  30,000.     (Same  as prcrious  entry.) 

Remit  by  express,  to  Bank  of  Commerce,  New  York,  for  your  credit,  cash,  15,000. 

Make  the  entry  on  the  right  side  of  the  Journal,  which  debits  Bank  of  Commerce  and  credits  Cash. 

Receive  cash  of  H.  E.  Sankey  on  deposit,  2000. 

Make  tlie  entry  on  the  left  side,  which  credits  Sankey  and  <lebits  Cash. 

Remit  by  express,  iv)  Merchants'  Bank,  Boston,  for  your  credit,  cash,  10,000. 

Entry  on  right  side  of  Journal. 

Pay  H.  E.  Sankey's  check  on  you  in  cash,  500. 
Entry  on  right  side,  which  debits  Sankc^y  and  Credits  Cash. 

Receive  cash  of  J.  W.  Gardner  on  deposit,  3000.00. 

Discount  for  C.  G.  Teall  a  note  nuide  by  R.  N.  Smith,  2500.00.  Discount,  O.HO.  Pay  him  the 
proceeds  in  cash,  2400.40. 

Enter  Bills  Receivid)le.  25(K),  on  the  right  side  of  the  Journal,  which  debits  Bills  Receival)le  and  credits  Cash  2500. 
Then  enter  Discount.  J).HO.  on  the  Uft  side,  which  credits  Discount  and  debits  ("jish  U.GO.  Cash  haviti«f  t)ccn  thus  credited 
2500  antl  debited  9.60,  the  lut  credit  to  Cash  is  2490.40,  as  shown  by  the  dillerence,  the  actual  amount  of  cash  paid  out. 

Pay  J.  AV\  Gardner's  check  on  you  in  cash,  ;500.00. 

Pay  express  charges  on  remittances  to  New  York  ami  Boston  in  cash,  2.50. 

The  Journal  is  now  to  be  balanced  for  the  day,  as  shown  on  pages  110-111.  *  It  will  be  apparent 
that  the  footings  of  the  Jouriuil  cannot  exhibit  the  actiuil  amount  of  cash  received  and  disbursed,  since 
in  many  of  the  entries  a  part  only  is  cash,  and  in  others  no  cash  whatever  is  involved. 

» The  footing  of  the  left  side  of  the  Journal  represents  the  total  credits  of  the  business,  except  the 
credit  of  cash;  '"the  footing  of  the  right  side  the  total  debits  of  the  business,  except  the  debit  of  cash; 
"the  difference  between  these  footings  must  therefore  exhibit  the  excess  of  cash  received  or  paid  out 
during  the  dav.  "  The  balance  for  the  i>revious  dav  being  added  to  the  footing  of  the  left  side  of  the 
Journal,  the  difference  between  the  sides  will  then  show  the  cash  on  hand. 

After  balancing  the  Journal,  post  the  day's  business.  Give  each  account  one-fourth  of  a  page 
space.  "  In  i)osting,  credit  all  of  the  items  upcm  the  left  side,  and  debit  cash  with  the  total  of  these 
items.  The  debit  and  credit  sides  of  the  Ledger  are  thus  kept  equal.  Debit  all  of  the  items  ujjon 
the  right  side,  and  credit  Cash  with  the  total  of  these  items.     Here  again  equal  debits  and  credits  are 

})Osted  to  the  Ledger. 

You  may  omit  the  ex])lanations  from  the  Ledger  in  posting  this  set.     The  work  of  Monday  and 

Tuesday  is  posted  in  full  below. 

STUDENT. 


188- 
July      5 


E.  A.  WOODEN. 


110 


20000 


188- 
Julv 


111 


500 


188- 
Julv 


no 


30000 


H.  E.  SANKEY. 


188- 
July 


111 
111 


500 
350 


45 


188- 
Julv 


110 

no 


2000 
994 


25 


188- 
July 


188- 
July 


188- 
July 


188- 
July 


188- 
July 


THEOKETICAL    AND    PRACTICAL    BOOK-KEEPING. 


J.  W.  GARDNER. 


113 


HI 

300 

188- 
July 

5 
6 

DISCOUNT. 


CASH. 


BANK  OF  COMMERCE. 


Ill 


15000 


188- 
July 


MERCHANTS'   BANK. 


I 

mil  10000 


188- 
July 


6 


BILLS  RECEIVABLE. 


EXPENSE. 


Ill 

2 

50 

EXCHANGE. 


188- 
July 

(J 

BILLS  PAYABLE. 


188- 
July 

G 

110 

no 

i 

I 


30(K) 
000 


188- 

j 

Julv 

5 

110 

0    60 

G 

no 

5    75 

188- 

1 

188- 

1 

1 

July 

5 

no 

55000 

GO 

July 

5 

111 

28302 

50 

6 

no 

12955 

6 

111 

910G 

45 

no 


2000 


no 


6250 


188- 

July 

5 
6 

111 
111 

2500 
2000 

1 

i 

no 


no 


500 


N.  Y.  C.  &  H.  R.  R.   R.  STOCK. 


Ill 


G250 


188- 
July 


6 


no 


2600 


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THKOIiEriCAL    AND    PIlAtmCAL    BOOK  KKEPlNGk 


TUESDAY.  JULY  6.  188-. 

Pay  II.  K.  Saiikoy's  clu'ck  in  c'ii«l\,  IJr)().4r). 

Soil  M.  F.  Ki'ViioKls  vour  si-dit  draft  on  Uank  of  Ooiiiinoree,  2000,  at  i  j^  exchange,  5.00.     Receive 

cash,  2005.00. 

Cifdit  Bank  of  C'onuiurrc  uiul  Exthunjri'  on  the  left  side  of  \\\v  Journal,  \vhi<li  debits  Ciinh. 

liny  of  Cook  &  Co.,  50  shares  N.  Y.  C.  &  II.  11.  K.  11.  Stock,  (<l.  125.00  jicr  share.  Pay  for  same 
by  check  on  Alerchants'  Bank. 

Dt'bit  N.  Y.  C.  &  II.  R.  R.  R.  Stork  on  the  rijzlit  side  of  the  .Tonrnal,  which  credits  Casli.  Credit  Merehunts'  Bank 
oa  the  left  8i«h'.  which  debits  Cash.  The  uinount  of  ({250  having  thus  been  entered  on  each  side  of  the  Journal,  the 
balance  of  Cash  nnuiins  unehjuiged  by  this  entry. 

Kccoive  cash  of  J.  W.  (Jardncr  on  deposit,  000.00. 

Discount,  for  II.  K.  Sankey,  Bcnj.  W.  Craig's  acce})tanco,  2000.00.  Discount  off,  5.75.  Pay  liiin 
cash,  1000.00,  and  i)hico  the  bahmce  to  his  credit.     {See  Rule  Third,  on  paije  109.) 

Accept  II.  Sibley's  draft  on  E.  A.  Wooden,  for  ])rivatc  «/f,  500.00.     {Sec  liule  Fourth,  page  109.) 
Sell  20  shares  N.  Y.  C.  cS:  II.  R.  R.  R.  Stock,  @  130.00  per  share,  and  receive  cash. 

Y\ni  may  now  balance  tlie  Journal  and  i)ost  the  day's  work,  as  instructed  for  yesterday.  "You 
will  observe  that  the  cash  on  hand  for  Monday  is  carried  to  the  second  column  of  the  Joiirnal  in 
bringing  the  balance  down  on  Tuesday,  "so  as  to  avoid  including  it  in  the  footing  of  the  items  of 
Tuesday's  business;  otherwise  Cash  account  would  be  again  debited  for  the  net  receipts  of  the  previous 
day. 

WEDNESDAY.  JULY  7.  188-. 

Remit  cash  to  Bank  of  Commerce,  New  York,  by  express,  10,000.     {lUde  Second,  page  109.) 

Receive  ctish  of  II.  E.  Sankey,  on  dei)osit,  3T5.00.     {Rule  First, page  109.) 

Pav  J.  W.  Gardner's  check  in  cash,  :(;.25.     {Rule  Second,  page  109.) 

Sell  10  shares  N.  Y.  C.  &  II.  R.  R.  R.  Stock  for  cash,  (a)  i:5<>.00.     {Rule  Fir.xf,  page  109.) 

Discount,  for  Rob't  C.  Foy,  Wells  Bro's  note,  800.00.  Discount  off,  3.27.  Pay  proceeds  in  cash, 
790.73.     {Rule  Third,  page  109.) 

Buy  for  cash,  25  shares  Park  Bank  Stock,  @  145.00.     {Rule  Second,  page  109.) 

Receive  cash  of  II.  C.  Gritliths,  on  deposit,  1500.00. 

Sell  Geo.  Archer  your  sight  draft  on  Bank  of  Commerce,  1000.00.  Exchange  i  i,  2.50.  Receive 
c*«h,  1002.50.     {Rule  First,  page  109.) 

Discount,  for  J.  W.  Gardner,  Caring  &  Reed's  note,  000.00.     Discount  off,  1.51.     Proceeds  placed 

to  his  credit,  598.49.     (Rule  Fourth,  page  109.) 

Pay  Express  charges  on  remittance  to  Bank  of  Commerce  in  cash,  1.75. 

You  may  now  balance  your  Journal.  There  should  be  eight  entries  on  the  left  side  and  six  on  the 
right  side.  The  balance  of  cash  on  hand  should  l)e  20,293.42.  Post  the  day's  business,  and  then  take 
a  Trial  Balance.     If  correct,  it  should  corresi)ond  with  the  following: 

TRIAL  BALANCE,  JULY  7,  188-. 


Student,       .        -        -        - 
E.  A.  Wooden,  .        -        - 

H.  E.  Sankey,      - 
J.  W.  Gardiu'r,         -        -        - 
Discount,     -        -        -        - 

Cash, 

Bank  of  Commerce,     - 
.Merchants'  Bank,     .         -         - 
Bills  Receivable,  -        -        - 
Expense, .        -        -        -        - 
Exchange,    -        -        -        - 
Bills  Pavable,  -         -         -         - 
N.  Y.  C^  &  H.  R.  R.  R.  Stock, 
H.  C.  Grithths, 
Park  Bank  Stock, 


500 

850 

45 

376 

25 

72805 

37 

25000 

10000 

5900 

4 

25 

6250 

3625 

32 

125317 

20000 

30000 

3369 

4198 

20 

52511 

3000 

6250 


7 

500 

3960 

1500 


125317    32 


25 
49 
13 
95 


50 


THEORETICAL    AND    PRACTICAL    BOOKKEEPING. 


115 


THURSDAY,  JULY  8.  188-. 

Sell  10  shares  Park  Bank  Stock  for  cash,  (?^  150.00. 

Pay  II.  C.  (JrilTlths'  draft  on  you,  500.00,  less  discount,  2.25,  l»y  check  on  Merchants'  Bank,  4M7.75. 
{Rule  Fourth,  page  109.) 

Receive  casji  on  deposit  of  E.  J.  Howard  &  Co.,  1275.00. 

Buy  of  Reed  k  Hill,  00  shares  X.  Y'.  C.  &  II.  R.  R.  \l.  Stock,  (tt)  124^.  Pay  f ;  r  same  by  check  on 
Merchants'  Bank,  3000.00.     Balance  in  cash.     {Rule  Third,  jiage  109.) 

Student  appropriates  cash  for  jtrivate  use,  500.00. 

Sell  J.  W.  Gardner  your  sight  draft  on  Bank  of  Commerce,  New  Y'ork,  3500.00,  at  ^'jl,  exchange. 
Receive  his  check  on  you  in  })ayment.     {Rule  Fourth,  page  109.) 

Pay  sundry  items  of  Telegraphing  in  cash,  1.45. 

Receive  cash  on  deposit  of  H.  E.  Sankey,  2350.00. 

Pay  your  acceptance  of  6th  inst.  in  cash,  500.00. 

Draw  a  sight  draft  on  Bank  of  Commerce,  7500.00,  and  remit  it  to  Merchants'  Bank  for  your 
cred i t .     {Ru le  Fo u rth ,  page  109. ) 

Pay  Howard  &  Co.'s  check  in  cash,  100.00. 

Discount  for  J.  AV.  CJardner  his  accommodation  note,  endorsed  by  Tx'C  &  Parker,  payable  at  Bank 
of  Commerce,  New  York,  1500.00.     Discount  off,  15.75.     Proceeds  to  his  credit. 

Sell  20  shares  N.  Y"".  C.  &  H.  R.  R.  R.  Stock  to  Morgan  &  Reeves,  @  120|^.  Receive  in  payment, 
their  check  on  Eourth  National  Bank,  New  Y'ork,  and  remit  same  to  Bank  of  Commerce,  f;  r  your 
credit. 

Balance  your  Journal,  and  post  the  day's  business.  There  should  be  twelve  entries  on  the  left 
side,  and  ten  on  the  right  side.     The  cash  on  hand  should  be  19801.97. 

FRIDAY,  JULY  9,  188-. 

Receive  cash  of  R.  N.  Smith,  for  his  note,  2500.00. 

Accei)t  E.  J.  Howard  &  Co.'s  draft,  in  favor  of  II.  C.  Grifftths,  to  apply  on  «(•,  850.00. 

Sell  II.  C.  Griffiths,  your  siglit  draft  on  Bank  of  Commerce,  1500.00,  at  i  ^  exchange.  Receive  in 
j>ayment,  cash,  800.00;  his  check  on  you  for  the  balance. 

Receive  cash  of  J.  AV.  Gardner,  on  dejjosit,  205.50. 

Sell  AVm.  Smith,  15  shares  Park  Bank  Stock,  @  150.00.  Receive  cash,  550.00,  and  his  note  f«»r 
the  balance. 

Pay  II.  E.  Sankey's  check  in  cash,  870.44. 

Receive  on  deposit,  of  0.  B.  AA\'lch,  cash,  500.00,  and  issue  him  a  Certificate  of  Deposit.  {Credit 
Certificate  of  Dejmsit  instead  of  0.  B.  Welch.) 

Have  J.  AY.  Gardner's  note  for  1500.00,  rec'd  yesterday,  re-discounted  at  Bank  of  Commerce. 
Discount  off,  10.25.     Proceeds  to  your  credit. 

Receive  cash  of  H.  C.  Griffiths,  on  deposit,  200.00. 

Protest  Caring  &  Reed's  note,  000.00,  rec'd  7th  inst.,  for  non-payment.  Pay  the  Notary  Public's 
fees  in  cash,  1.35.     {Debit  Protested  Paper,  601.35.  and  credit  Bills  Receivable,  600.00.) 

Sell  H.  E.  Sankey  40  shares  N.  Y.  C.  &  II.  R.  R.  R.  Stock,  @  128.  Receive  his  check  on  you, 
3120.00,  and  his  check  on  Chemical  National  Bank,  New  Y'ork,  for  the  balance. 

Receive  cash  of  E.  J.  Howard  «&  Co.,  on  deposit,  2500.00. 

Receive  cash  of  AVells  Bro's,  for  their  note,  800.00,  and  interest  on  same,  4.25. 

Balance  your  Journal  and  post  the  day's  business.     Cash  on  hand,  29103.93. 

SATURDAY,  JULY  10,  188-. 

Receive  cash  on  deposit  of  E.  J.  Howard  &  Co.,  275.00. 

Discount,  for  L.  D.  Briggs,  Alonzo  Stebbins'  note,  890.00.  Discount  off,  17.80.  Give  him  draft 
on  Bank  of  Commerce  for  500.00,  at  \'^  exchange,  and  pay  him  the  balance  of  the  proceeds  in  cash. 

Pay  II.  E.  Sankey's  check  in  cash,  317.28. 

Buy  100  shares  AVestern  Union  Telegraph  Stock,  @  98f.  Give  in  payment,  Wm.  Smith's  note, 
rec'd  yesterday,  1700.00,  less  discount,  12.75;  your  check  on  Merchants'  Bank,  0000.00,  and  ca^h  for 
the  balance. 

J.  W.  Gardner,  for  whom  you  discounted  Caring  &  Reed's  note,  protested  yesterday,  takes  up  the 

note  by  his  check  on  you,  001.35. 


■W-  .        "^iimSViM: 


I  f 


i      '      i 


III     ) 


116 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


Receive  cash  of  II.  E.  Saiikey,  on  deposit,  3000.00.  Issue  liim  a  Certificute  of  Dcjxtsit  for  1000.00, 
and  i)hiee  the  balance  to  liis  credit. 

Sell  II.  C  (Jriitiths,  50  sliarcs  W.  U.  Telegraph  Stock,  @  101;^.  Receive  i>i  j»ayment,  youi 
acceptance  of  yesterday  in  his  favor,  850.00,  less  discount,  11.83;  a  sight  draft  on  Inii)orters  and 
Traders'  Bank,  New  York,  1(548.84;  his  check  on  you,  400.25;  and  currency  for  the  balance. 

Receive  cash  of  J.  W.  (Jardner,  on  deposit,  1750.00. 

Remit  to  Bank  of  Commerce,  for  yt)ur  credit,  the  check  on  Chemical  National  Bank  rec'd  yester- 
day, 2000.00,  and  the  draft  on  Importers  and  Traders'  Bank  rec'd  to-day,  1048.84. 

Sell  for  cash,  25  shares  W.  U.  Telegraph  Stock,  @  100^. 

Benj.  W.  Craig  ])ays  liis  acceptance  rec'd  0th  inst.,  2(H)0.00,  and  interest  on  same,  COO,  as  follows: 
His  check  on  Monroe  Savings  Bank,  1000.00;  your  Certificate  of  Deposit  issued  yesterday  to  O.  B. 
Welch,  500.00;  and  currency  for  the  balance. 

Balance  your  Jouriud.  Cash  on  hand,  34350.09.  After  i)osting  the  day's  business,  make  a  lialance 
Sheet  and  close  the  Ledger. 

INVENTORIES,  JULY  10,  188-. 

20  shares  N.  Y.  C.  &  II.  R.  R.  R.  Stock, @  124^ 

25        '*        W.  U.  Telegraph  *' @     08| 

Net  Gain  of  Firm,  754.31.     Present  Worth  of  Firm,  49,754.31. 

Note. — Rememl)er,  in  making!;  the  Sumimuy  and  in  closinjj^  tlio  Loss  and  Gain  account,  that  tlie  Net  Gain  is  to  Ik? 
shared  by  tlic  proprietors  in  proportion  to  their  investments.  Hand  to  the  t«':icher  u  jiroof  of  tlie  baluuceb  brouglit  down 
in  closing  the  Ledger.     Also  present  your  books  for  inspection,  and  be  prepared  uj)on  the  following: 

QUESTIONS  FOR  REVIEW. 

Page  109. — *  Define  the  Cash  Method.  '  To  what  kind  of  business  is  it  best  adapted?  '  What  are 
its  principal  advantages?  *  For  transactions  in  which  Cash  is  the  only  debit,  how  is  the  entry  to  be 
made  in  the  Cash  Journal?  *  How  if  Cash  is  the  only  credit?  *  How  if  there  are  several  debits  and 
credits,  one  of  which  is  Cash?    '  How  if  no  Cash  enters  into  the  transaction? 

Page  112. — *  Why  do  not  the  footings  of  the  Journal  show  the  cash  received  and  disbursed?  'What 
does  the  fooling  of  the  left  side  represent?  '"The  right  side?  "What  will  the  ditference  between 
these  footings  represent?  "  How  is  the  balance  of  cash  on  hand  found?  "Exidain  the  manner  of 
posting  and  how  the  Ledger  is  kept  in  balance. 

Page  114. — 'Mil  bringing  down  the  balance  of  the  previous  day,  to  which  column  is  it  carried? 
"Why? 

The  month  of  A])ril,  commencing  on  page  45,  is  now  to  be  worked  by  the  Cash  Method. 

An  entry  for  Student's  resources  and  liabilities,  as  shown  by  Balance  Sheet,  page  34,  is  here 
necessary.  A  few  entries  are  given  below,  and  you  are  to  continue  the  work  as  there  illustrated,  using 
o^pjxhsife  pages  in  your  Journal,  and  entering  the  items  in  the  first  column,  as  in  the  previous  set. 

Balance  the  Journal  twice  only  during  the  month,  viz:  on  the  13th  and  24th. 

At  the  end  of  the  month  post,  make  a  Balance  Sheet  and  close  the  Ledger.  Your  results  should 
agree  with  those  given  on  pages  48  and  49.  After  completing  this  work,  present  your  books,  with  a 
proof  of  the  balances,  to  the  teacher. 


APRIL,   188-. 


APRIL.   188-. 


CASH.                  TO            81INDH1E8. 

April 

1 

H.  W.  Stevens,   On  account. 

435 

Wells,  J.  &  Co.     '' 

708 

75 

Bills  Pavable,     Outstanding, 

300 

I).  Bailev,           On  account. 

100 

W.  A.  Bancroft,  " 

38 

Student,              Net  Investment, 

5170 

34 

D.W.Leonard,     " 

5170 

34 

1 ).  Bailey,           Mdse.  on  acc't. 

1112 

50 

2 

Ford  &  Co.          Rec'd  note  on  <^, 

100 

A])ril 


SUNDRIES.  TO  CASH. 

Mdse.  Inventory, 

Ford  &  Co.         On  account. 
Expense,  Inventory, 

Jas.  T.  Iloag,     On  a(;count, 
Bills  Rec'v,         On  hand, 
Sickles,  S.  &  J.  On  account, 
Clark,  Sons  &B.  "         " 
College  Bank,    On  de])osit, 


Mdse. 
Bills  Rec'v, 


10000  lbs.  Sugar, 

llic. 
Ford  &  Co. 's  note 

on  account 


1420 
200 
300 
98 
130 
17(» 
192 

3958 

1112 
10(1 


50 


75 
30 

19 

93 

50 


^ 


SHIPPING  AND  COMMISSION. 


'  This  set  is  designed  to  illustrate  a  general  business  in  shipping  property  to  and  receiving  jtroixTtv 
from  other  parties,  to  be  sold  on  commission.  The  same  principles  are  involved  as  explained  and  illus- 
trated on  pages  55-57. 

'  In  addition  to  the  Journal,  a  Commission  Sales  Book  and  Cash  Book  are  to  be  kept  as  '  jtrinciiml 
books.  *  Those  entries  only  which  pertain  to  consignments  are  to  be  made  in  the  Sales  Book.  *  Entries 
involving  cash  are  to  be  made  in  the  Cash  Book.     « All  other  entries  are  to  be  made  in  the  Journal. 

The  simpler  forms  only  of  Commission  Sales  Book  and  Cash  Book  are  illustrated  in  this  set. 

Special  columns  may  sometimes  be  i)rofitably  introduced  in  these  books,  and  when  found  advan- 
tageous, they  can  easily  be  added  to  meet  the  requirements  of  any  particular  branch  of  the  Commission 
business. 

117 


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THKOKiCnCAL   AiND   PUACTIUAL   UOOK-KEEPING. 


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THEORETICAL    AND    PRACTICAL    BOOK  KEEPING. 

CASH    BOOK. 

SEPTEMBER,   188-. 


Sept. 


Sept. 


1 

!  23 

8 

3 

!> 

24 

"»% 

] 
i 

11 

CASH  TO  SVNnRIES. 

Student,  Investment, 

M<lse.  50  bbls.  Ai)j>le8, 

M.  B.  Steele,  On  account, 

Foster  Bro's  C.Vnisignment,  200  hu.  \l.  Wheat. 


2.25 


lialjince. 


3500 

112 

50 

80 

274 

50 

3007 

39(>7 

3G28 

25 

JOURNAL 

SEPTEMBER    3,   188- 


23 

24 
23 


24 


23 


Mdse. 

To  Bills  Payable, 
Welch  Bro's, 


Sbip't  to  L.  Coleman, 

Bav  View. 
To  Mdse. 
Cash, 


Bo't  of  Welch  Bro's, 

500  bbls.  A])ples,  2. 

(Jave  them  note  at  10  days, 
Balance  on  account, 

5. 

Ship])ed  him,  to  be  sohl  on  my 

account, 
•^50  bbls.  A|)])le8,  2. 

Cartage  on  same. 


1000 


505 


LEDGER. 

STUDENT. 


188- 
Se})t. 


Casli, 


GOO 
400 


500 
5 


3500 


THEOKETICAL    AND    PRACTICAL   BOOK-KEEPING. 


CASH    BOOK. 


SEPTEMBER.  188- 


188- 
Sei)t. 


2 

v/ 

3 

23 

5 

v/ 

G 

V 

10 

29 

SUNDRIKS  TO  CASH. 

Hamlin's  Consignment,  Freiglit. 

Expense,  Office  Books, 

Slii])'t  to  L.  Coleman,  Cartage, 

Foster  Bro's  Consignment,  Freight, 

Welcli  Bro's,  On  account. 


Balance, 


188- 
Sept. 


10 


Cash, 


On  hand. 


Go 

18 

5 

50 

2(m 


75 


LEDGER. 


WELCH   BROS. 


200 


188- 
;  Sept. 


3    Mdse. 


STORAGE. 


188- 
Sept. 

G 

Hamlin's  Con. 


COMMISSION. 


188- 
Sept.     G 


WM.  D.  HAMLIN. 


llumlin's  Con. 


188- 
Sept. 

G 

Hamlin's  Con. 


121 


338 
3G28 

39C7 


75 
25 


40<J 


10 


9 


24 


4    <  «(> 


MERCHANDISE. 


188- 

188- 

Sei)t. 

3 

Sundries, 

1000 

Sei)t. 

8  Cash, 

112 

50 

* 

5 

Ship't  to  L.  C. 

500 

CIS 

so 

188- 
Sei>t. 


G 


Hamlin's  Con. 


HOYT  &  EATON. 


282 


188- 
Sept. 


3 
10 


Hamlin's  Con. 


188- 
Sept. 


Cash, 


M.  B.  STEELE. 


180 

775 

188- 
Sept. 

y 

Cash, 


EXPENSE. 


18 


75 


80 


BILLS  PAYABLE. 


188- 
Sept. 


3 


Mdse. 


SHIPMENT  TO    L.  COLEMAN,   Bay  View. 


188- 
Sept. 


o 


Sundries, 


505 


iUH) 


il    ! 


122 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


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SEPTEMBER.  188-. 

1.  Commence  a  general  Shi])])in«i^  and  Commission  Business,  investing  cash,  3500.00.     (^.  B.) 

2.  Receive  from  Wm.  I).  Hamlin,  Laporte,  to  sell  on  his  account,  1000  bu.  White  Uats.     Pay  Freight 

on  same  in  cash,  (55.00. 

Note. — Enter  in  Sales  Book  and  Casli  Book,  and  check  the  entries.  See  form  of  Sales  Book  on  paj3:es  118-119,  form 
of  Cash  BfKjk  on  pages  12l)-131.  Give  each  Consijinment  one-third  of  a  paj^e  sjMice  in  the  Sahs  Book.  Cash  is 
checked  in  the  Sales  Book  and  omitted  in  posting;.  iM'cause  the  entry  in  the  Cash  B<M)k  credits  Cjish;  and 
Hamlin's  Consi<;nment  is  checked  in  the  (^ish  Book  and  oniitted  in  posting,  lurause  the  entry  in  the  Sales  Book 
debits  Hamlin's  C'onsignment ;  otherwise  these  amounts  would  be  posted  twice, 

3.  Sell  M.  B.  Steele,  on  "/c,  from  Hamlin's  Consignment,  400  bu.  W.  Oats,  @  45c.     {S.  B.) 

Note. — Makini;  this  entry  on  the  riirht  hand  side  of  the  Sales  Book  credits  Ilamlin*s  Consignment  and  debits  M.  B. 
Steele,  same  as  in  the  Cash  Method. 

Buy  of  Welch  Bro's,  500  bbls.  Aj)ples,  @  2.00.     Give  them  in  payment,  your  note  at   10  days, 

000.00.      Balance  on  <yc.      {J.) 
Pay  cash  tor  set  of  Office  Books,  18.75.     {C.  B.) 

5.  Sliip  Ij.  C'olenum,  Bay  View,  to  be  sold  on  your  account,  250  bbls.  Aj)ples,  @  2.00.     Pay  Cartage 

on  same  in  cash,  5.00.     {J.  and  C.  B.) 

Note. — Check  Cash  in  the  Journal  and  Ship't  tt)  L.  Coleman  Ir.  the  Ca.sh  Book.  For  explanation  see  note  uader 
Sept.  2d,  above. 

6.  Receive  from  Foster  Bro's,  Carthage,  to  sell  on  their  account,  500  bu.  Red  Wheat.     Pay  Freight 

on  same  in  cash,  50.00.     {S.  Ji.  and  C.  B.,  and  check  the  entries.) 
Sell  Hoyt  cSl  Eatcm,  on  ojc,  from  Hamlin's  Consignmetit,  000  bu.  W.  Oats,  %  47c.     {S.  B.) 
Close  Wm.  T).  Hamlin's  Consignment,  and  render  an  account  of  same.     Storage,  Ic.  jkt  bu.,  10.00; 

Commissi(m,  2%  on  sales,  9.24.     Wm.  I).  Handin's  net  uroceeds  to  his  credit.  377.7^      ('?.  B. 

See  form  of  Acconnt  Sales,  page  80.) 

^ote. — Rule  a  sheet  of  foolscap  paper,  and  write  up  the  form  of  tins  Account  of  Sales.  See  illustration  on  page 
80.     liule  up  the  Consignments  in  the  Sales  Book  as  soon  Jis  they  are  closed. 

8.  Sell  for  cash,  50  bbls.  Apples,  @  2.25.     {C.  B.) 

Receive  from  Harding  &  Lee,  Salem,  to  sell  on  their  account,  400  bbls.  Flour.     {S.  B.) 

9.  Receive  casii  of  M.  B.  Steele,  on  «f,  80.00.     {C.  B.) 

Sell  Geo.  Gould,  for  cash,  from  Foster  Bro's  Consignment,  200  bu.  H.  Wheat,  @  1.37^.     {S.  li. 
and  C  B.) 
10.    Pay  Welch  Bro's,  cash  on  %  200.00.     {C.  B.) 

Sell  M.  B.  Steele,  on  "fc,  at  10  days,  from  Harding  &  Lee's  Consignment,  100  bbls.  Flour,  @  7.75. 
{S.  B.) 

You  may  now  balance  your  Cash  Book,  after  which  post  the  foregoing  entries.  Post  from  the 
Journal  as  heretofore.  "Post  fnmi  the  Cash  B(K)k  ami  Sales  Book  as  instructed  for  the  Cash  Method; 
that  is,  all  items  on  the  left  side  are  to  be  credited,  and  all  on  the  right  side  debited.  \'ou  need  not  in 
this  set,  however,  open  in  the  Ijcdger  a  Cash  account  nor  accounts  with  Consignments.  "  When 
taking  a  Trial  Balance,  carry  to  it  the  balance  of  cash  on  hand,  as  shown  by  the  Cash  Book,  aiui  the 
balances  of  all  unclosed  Ccmsignments,  as  shown  by  the  Sales  Book.  All  items  that  are  checked  are 
not  to  be  posted.  In  posting  the  items  not  checked,  use  the  Ledger  folio  as  a  check  mark.  G:ve  each 
account  one-fourth  of  a  page  s})ace. 

Commeiu^e  with  the  Cash  Book,  and  complete  the  ])osting  from  that  book;  then  follow  with  the 
Sales  Book  in  same  manner,  and  then  with  the  Journal.  The  datc^s  will  not  come  in  regular  order  in 
the  Ledger  by  this  method  of  posting,  but  this  is  not  material.  After  you  have  finished  posting  from 
all  of  the  books,  your  Ledger  accounts  should  agree  with  those  given  on  i)ages  120-121. 

Take  a  Trial  Balance,  and  it  should  agree  with  the  one  given  (m  next  page.  The  debits  and 
credits  in  Foster  Jiro's  C(msignment  and  Harding  &  Lee's  C(msignment  being  une(|ual,  as  shown  by 
your  Sales  Book,  it  becomes  necessary  to  enter  them  in  the  Trial  Balance;  also  enter  in  the  Trial 
Balance  the  balance  of  cash  on  hand,  as  shown  bv  the  Caxh  Book. 


THEORETICAL    AND    PRACTICAL    BOOKKEEPING. 

TRIAL  BALANCE,  SEPTEMBER  10,  188-. 

■  — 

Student,      .        -        -        - 

Mdse.      .        -        - 

M.  B.  Steele,       - 

Expense,  _         -         - 

Welch  Bro's, 

Storage,  .        -        - 

Commission,        -        - 

W^m.  D.  Hamlin,    - 

Hoyt  «&  Eaton,    -        -        - 

Bills  Payable, 

Shi})'t  to  L.  Coleman,  Bay  View, 

Foster  Bro's  Con.     - 

Harding  &  Lee's  Con. 

Cash,       _        -        -        - 


123 


1 

3500 

1000 

612 

50 

955 

80 

18 

75 

. 

200 

400 

10 

9 

24 

282 

Of**** 

76 

600 

7                                       _             •             —             ^             —             — 

i   505 

224 

50 

3028 

25 

00 

775 

'    6589 

6589 

()0 

After  completing  the  Trial  Balance,  continue  the  business,  making  the  entries  for  the  following 
transactions  in  the  various  books  as  heretofore  instructed. 

SEPTEMBER.   188-. 

11.  Receive  cash  of  Hoyt  &  Eaton,  on  %  182.00. 

Buy  of  Jas.  P.  King,  on  "jc,  300  bu.  Potatoes,  @  65c.     {J.) 

Pay  cash  for  Cooperage  on  Flour  belonging  to  Harding  &  Lee's  Consignment,  3.75.     (*S'.  B.  and 
C.  B.,  and  check  the  entries.) 

12.  Sell  P.  J.  Gibson,  for  cash,  from  Foster  Bro's  Consignment,  300  bu.  R.  Wheat,  @  1.37^.     {S.  B. 

and  C.  B.,  and  check.) 
Close  Foster  Bro's  Consignment,  and  render  an  account  of  same.     Storage,  2^c.  per  bu.,  12.50: 
Commission,  2^  on  sales,  13.73.     >iet  proceeds  lemitted  in  cash,  610.02.     (6".  B.  and  0.  B.; 
check  610.02.) 

13.  Receive  from  L.  Coleman  an  account  of  the  shipment  made  him  5th  inst.,  with  cash  for  your  net 

proceeds,  634.50.     (C.  B.) 
Student  draws  cash  for  private  use,  50.00. 
Sell  J  no.  Howe,  from  Harding  &  Lee's  Consignment,  100  bbls.  Flour,  @  8.00.     Receive  cash, 

300.00.      Balance  on  «(;  at  15  days.     (/?.  B.  and  V.  B.;  check  300.00.) 

15.  Ship  A.  G.  Niles,  Evansville,  to  be  sold  on  your  account,  200  bu.  Potatoes,  @  65e.     Pay  Cartage 

m  cash,  3.25.     (J.  and  C.  B.j  check  S. 2 5.) 
Note.— Write  up  on  foolscap  paper  the  form  for  this  Invoice  of  Shipment.     See  Business  Forms,  on  last  pages  of 
the  text  book,  for  illustiation. 

Pay  Book-keeper  cash,  to  apply  on  Salary,  25.00. 

Remit  Harding  &  Lee,  for  cash  sale  made  from  their  Con.  13  inst.,  300.00.    {S.  B.,  C.  B.  and  check.) 

16.  Pay  your  note  due  to-day  in  cash,  600.00. 

18.  Receive  from  Henry  Benson,  Seneca,  to  sell  on  his  account,  500  doz.  Eggs.     Pay  Express  charges 

in  cash,  0.25. 
Note.— The  letters  indicating  the  books  will  hereafter  be  omitted.     Rememl)er  to  check  Cash  whenever  it  is  debued 
or  credited  elsewhere  than  in  the  Cash  Book,  and  to  check  Consigunuaits  if  debited  or  credited  elsewhere  than 
in  the  Sales  Book. 

19.  Remit  W^m.  D.  Hamlin  cash  in  full  for  his  net  proceeds,  as  per  Account  Sales  6th  inst.,  377.76. 
Sell  for  cash,  50  bu.  Potatoes,  @  75c. 

Pay  J.  P.  King  cash  on  %  50.00. 

Sell  to  Geo.  Lacy,  tor  cash,  from  Benson's  Consignment,  200  doz.  Eggs,  @  18c. 

20.  Sell  W^  D.  Vance,  on  his  note  at  30  days,  from  Harding  &  Lee's  Consignment,  200  bbls.  Flour, 

@  8.00. 
Close  Harding  &  Lee's  Consignment,  and  render  an  account  of  same.     Storage,  8c.  i>er  bbl. ; 

Commission,  2  ^  of  sales.     Balance  to  Harding  &  Lee's  credit  due  by  ecpiation  Oct.  loth. 
Note— You  are  recniired  to  work  this  equation  to  verify  the  result  as  given  above.     See  your  Arithmetic  for 

instruction  in  Equation  of  Accounts. 

Receive  cash  of  M.  B.  Steele,  in  full  of  %  875.00. 


fh'"'   * 


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J  t 


124 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


You  may  now  balance  yonr  Cash  Book.  Cash  on  hand,  4078.07.  Next  post  the  foregoing  entries 
from  the  various  books,  as  instructed  on  i)age  U2,  after  which  take  a  Trial  Balance.  Keniember  that 
Cash  and  all  unclosed  CU)nsignments  must  be  entered  in  the  Trial  Balance  before  it  will  i)rove. 

Ill  the  Trial  Balance  given  below,  a  portion  only  of  the  amounts  are  extended,  the  student  being 
required  to  complete  the  extensions,  as  well  as  to  verify  those  which  are  given,  from  his  own  books. 
After  completing  the  Trial  Balance,  continue  the  business  to  the  cud  of  September,  when  you  will 
make  out  a  Balance  Sheet  and  close  the  Ledger. 

TRIAL  BALANCE,  SEPTEMBER  20.  188-. 


Student,  .        -        -        - 

Mdse. 

Expense,         -        -        -        - 
Welch  Bro's,        .         .         -         - 
Storage,  -         -         -         -         - 
Commission,        -         -         -         - 
Iloyt  &  Eaton,         .         -         - 
Shfp't  to  L.  Colemaii,  Bay  View, 
J.  P.  King,     .        -        -        - 
Harding  &  Lee,  -         -         -         - 
J.  Howe,         .        .        -        - 
Bills  Receivable,  -         -         - 

Ship't  to  A.  (}.  Niles,  Evansville, 
Henry  Benson's  Con.  -  -  - 
Cash,       .         -         -         -        - 


50 
1195 


505 


183    25 


4078 


8<;:n 


07 


07 


3500 
780 


54 

80 

C34 


8037 


50 
47 

50 


0'; 


SEPTEMBER.   188-. 

21.  Ship  Wells  &  Co.,  Argyle,  to  be  sold  on  y<nir  account,  100  bbls.  Ap])les,  @  2.00. 

22.  Receive  from  Lester,  Hall  &  Co.,  Brantford,  to  sell  on  their  account,  200  bu.  Clover  Seed.     Pay 

Freight  in  cash,  15.00. 

23.  Receive  from  A.  G.  Niles  an  ac^-ount  of  the  shipment  made  liim  15th  inst.     Net  j>roceed8  placed 

to  your  credit,  121.75. 
Receive  cash  of  Jno.  Howe,  on  ^c,  300.00. 

24.  Remit  Harding  &  Lee  cash,  for  balance  due  them  on  their  Consignment,  2775.75,  less  discount  to 

equated  time  of  i)ayment,  Oct.  10. 
Receive  from  Wm.  D.  Hamlin,  to  sell  on  his  account  (2d  Consignment),  3000  bu.  White  Wheat. 
Pay  Freight  in  cash,  330.00. 

25.  Buy  of  Thos.  C.  Jennings,  on  your  note  at  GO  days,  800  bu.  Corn,  @  70c. 
Pav  Welch  Bro's  cash,  in  full  of  «/c,  200.00 

Sell  French  &  Sweet,  for  cash,  from  U'ster,  Hall  &  Co.'s  Consignment,  100  bu.  Clover  Seed, 

@  5.00. 
Close  Lester,  Hall  &  Co.'s  Consignment  (100  bu.  Clover  Seed  renuiining  unsold),  and  render  an 
account  of  same.      Storage,  2ic.  per  bu.,  5.00;   CU)mmission,  2  ^  of  sales.      Net  proceeds 
remitted  in  cash,  470.00. 
Note.— Make  a  memorandum  simply,  on  the  credit  side  of  the  Ccmsiiinment.  of  the  100  bu.  unsold.     Next  close 
and  rule  up  the  Cousigmuent,  and  tl^en  enter,  below  the  ruling  on  the  debit  side,  the  memorandum  of  the  lUO 
bu.  unsold. 

2C.    Sell  for  cash,  50  bu.  Potatoes,  @  78c. 

Ship  O.  W.  Sears,  Branchport,  to  be  sold  on  your  account,  800  bu.  Corn,  @  70c.     Pay  Insurance 
5.00,  and  Labor  on  same,  3.10  in  cash. 

27.  A.  Cr.  Niles  remits  you  cash,  to  bala]u;e  his  ^,  121.75. 

Pay  cash  for  re-packing  300  doz.  Eggs  belonging  to  Benson's  Consignment,  1.25. 
Pay  J.  P.  King  cash  on  «(•,  45.00. 

28.  Sell  Jas.  Barger,  for  cash,  285  doz.  Eggs,  from  Benson's  Consignment,  @  17c. 
15  doz.  Eggs  belonging  to  Benson's  Ccmsignment  were  broken. 

Close  Benson's  Consignment,  aiul  reiuler  an  account  of  same.     Commission,  2^  of  sales.     Net 
proceeds  remitted  in  cash. 


TlIEOREllCAL    AND    PRACTICAL    BUOK-KEEPING. 


125 


28.    Sell  M.  15.  Steele,  on  f/c,  100  bbls.  Apples,  (^  2.40. 

Prepay  your  note  of  25th  inst.,  favor  of  Thos.  C.  Jennings,  in  cash,  less  discount. 
20.    Sell  Scott  &  Trevor,  on  their  note  at  15  days,  from  Hamlin's  Con.  No.  2,  250  bu.  W.  Wheat, 

@  1.25. 
30.    Receive  from  Wells  &  Co.  an  account  of  the  shipment  made  them  21st  inst.      Net  proceeds 
remitted  in  cash,  224.50. 
W.  J).  Vance  i)rei)ays  his  note  of  20th  inst.  in  cash,  less  discount. 
Sell  Chas.  0.  Nixon,  from  Lester,  Hall  &  Co.'s  C(msignment,  100  bu.  Clover  Seed,  @  5.00.    Receive 

his  check  on  Bank  of  Republic,  200.00.     Balance  on  «/<?. 
Close  Lester,  Hall  &  Co.'s  Consignment,  and  render  an  account  of  same.     Storage,  2U'.  jht  bu., 
2.50;  Commission,  2j^  of  sales.     Remit  cash  to  Lester,    Hall  &  Co.  200.00,  and  jilace  the 
balance  of  the  net  proceeds  to  their  credit. 
Pay  Book-keeper  balance  due  on  month's  salary,  25.00,  and  Warehouse  Rent,  50.00,  in  cash. 
Receive  cash  of  Iloyt  &  Eaton,  to  balance  ^,  100.00. 


INVENTORY,  SEPTEMBER  30,  188-. 

Shipment  to  O.  W.  S.,  Branchport, 


5f>8  10 


You  may  now  balance  your  Cash  Book.     Cash  on  hand,  2464.18.      Post  and  make  out  a  Balance 
Sheet  and  close  the  Ledger.     Your  Summary  should  exhibit  as  follows: 

SUMMARY,   SEPTEMBER  30,   188-. 


Total  Resources, 4102  28 

**     Liabilities, 387  50 


Present  Worth, 3714  78 


Total  Gains, 395  03 

*'     Losses, 130  25 


Net  Gain, 2(;4  78 


After  closing  the  Ledger  and  proving  your  balances,  proceed  to  work  the  months  of  July  and 
August,  on  pages  58  to  G3,  in  the  same  manner  as  the  preceding  set,  using  the  Cash  Book,  Sales  Book 
and  Journal  as  i)rincipal  books.  At  the  end  of  July  post,  make  out  a  Balance  Sheet  and  close  the 
accounts  showing  losses  and  gains.  Your  results  should  agree  with  those  given  on  page  GO.  At  the 
end  of  August  make  out  a  Balance  Sheet  aiul  close  the  Ledger.  Your  results  should  agree  with  those 
given  on  page  63.  Present  youi  books,  with  a  proof  of  the  Ledger  balances,  to  the  teacher  for 
inspection. 

QUESTIONS  FOR   REVIEW. 

Page  117. — 'What  docs  this  set  illustrate?  MVhat  books  are  emjdoyed  ?  'Are  they  used  as 
princii)al  or  auxiliary  books?  MVhat  entries  are  made  in  the  Sales  Book?  '  In  the  Cash  Book?  •In 
the  Journal? 

Page  122. — ^  Why  are  Cash  and  Consignments  checked  and  omitted  in  posting  when  they  aj)j>ear 
in  any  other  books  than  the  Cash  Book  and  Sales  Book?  *  In  posting  from  the  Cash  Book  and  Sales 
liook,  how  is  the  work  to  be  performed?  ®  Why  must  unclosed  Consignments  and  the  balance  of  cash 
on  hand  be  entered  in  the  Trial  Balance? 

Note. — Review  also  the  questions  given  on  iwgc  63. 


V 


WHOLESALE. 


>  This  set  is  designed  to  illustrate,  in  a  general  way,  a  method  for  keeping  the  books  of  a  Wholesjde 
or  Jobbing  Business,  Mjy  combining  and  extending  the  short  methods  of  book-keeping  explained  and 
illustrated'' in  previous  sets,  so  that  much  time  and  hibor  nuiy  l)e  saved  in  performing  the  work. 

Since  in  ahnost  every  business  of  any  magnitude  there  will  be  features  peculiar  to  that  particular 
business,  there  must  of  necessity  be  required  other  forms  and  books  than  those  here  given,  and  which 
it  would  be  quite  impossible  to  illustrate  within  the  scope  of  an  ordinary  text  book. 

»The  princii)al  books  and  forms,  however,  together  with  their  uses  and  advantages,  are  so  fully 
illustrated  and  explained,  that  any  moditications  of  or  additions  to  them,  necessary  to  meet  the  reciuire- 
ments  of  any  particular  business,  may  readily  be  devised  and  emjdoyed. 

The  books  to  be  used  are  the  Journal,  Sales  Book,  Check  Book,  Cash  Book,  Bill  Book  and  Ledger. 

198 


:    I 


THEOKETICAL    AND    PRACTICAL    BOOK-KEEPING. 


12: 


EXPLANATIONS  OF   BOOKS   USED. 

JOURNAL 
*  The  Journal,  as  used  in  this  set  (see  form  on  page  128),  combines  with  it  the  Invoice  Book, 
Bometinios  kept  as  a  sei)arate  book,  *by  the  addition  of  an  extra  column  (headed  "  Mdse.  Dr."  in  the 
form),  in  which  the  purchases  of  Mdse.  only  are  to  be  entered.  *  This  c<dumn  is  to  be  added  and  the 
footing  carried  forward  from  page  to  page  until  the  end  of  the  day  or  week  or  month,  as  desired,  ^  at  which 
time  the  total  footing  is  to  be  posted  to  the  debit  of  Mdse.  account.  ^  The  items  in  the  columns 
headed  ''Sunds.  Dr."  and  "  Sunds.  Cr."  are  to  be  posted  separatelj%  as  in  the  ordinary  Journal. 
These  columns  may  be  footed,  so  as  to  prove  with  the  Check  Sheets  exi)lained  on  jiage  134. 
•The  Livoices  themselves  may  either  be  filed  away  in  i)ackages,  or  pasted  in  a  large  book  made 
especially  for  that  purjMjse.  '"This  may  be  used  as  a  princii)al  book  if  desired,  by  "posting  from  it 
directly  to  the  Ledger,  without  nuiking  the  entries  in  the  Journal. 

SALES  BOOK. 
"  The  Sales  Book  (see  form  on  i)age  129)  is  designed  to  contain  sales  of  Mdse.  only.  "  The  net 
amount  of  each  bill  is  to  be  extended  to  the  last  column,  and  debited  to  the  i)erson  who  purchased  it. 
"  The  last  column  is  to  be  added  and  the  footing  carried  forward  from  page  to  i)age  until  the  end  of  the 
day,  week  or  montli,  as  desired,  '*the  total  being  then  posted  to  the  credit  of  Mdse.  account.  "An 
additional  advantage  may  be  secured  by  using  for  a  Sales  Book  a  large  Copying  Book,  in  which 
im})ressions  of  all  of  the  bills  may  be  made  and  posted  directly  to  the  Ledger. 

CHECK  BOOK. 
"  In  the  Check  Book  (the  form  given  on  page  130  shows  the  stub  only)  is  to  be  kept  a  record  of  all 
transactions  with  the  bank,  '^md  a  Bank  account  is  not  to  be  opened  in  the  Ledger.  '»  When  a  deposit 
is  made,  the  Bank  is  debited  for  the  amount  of  the  dei)osit  by  entering  it  in  the  Check  Book,  with  the 
})roper  explanation,  and  *" adding  the  amount  to  the  previous  balance.  "  When  a  check  is  drawn,  the 
bank  is  credited,  by  "  deducting  the  amount  of  the  check  from  the  previous  balance.  "  No  entry  is  to 
be  made  in  the  Cash  Book  when  cash  is  deposited,  '*the  balance  in  bank  being  treated  as  cash  on 
hand.  **  When  a  payment  is  made  by  check,  therefore,  the  amount  must  be  entered  to  the  credit  of 
cash  in  the  Cash  Book,  in  addition  to  crediting  the  bank  in  the  Check  Book,  because  reducing  the 
bank  balaucn  reduces  the  cash  balance  at  the  same  time. 

CASH   BOOK. 

^  The  Cash  Book  (see  form  on  pages  130-131)  is  designed  to  contain  cash  entries  only.  "  It  is 
arranged  with  special  columns,  ^  in  order  to  classify  to  some  extent  the  receipts  and  ])ayments  of  cash, 
and  to  facilitate  the  work  of  posting.  ^  The  footings  only  of  the  special  columns  are  to  be  posted 
daily,  weekly  or  monthly,  as  desired,  those  on  the  left  side  being  credited,  and  those  on  the 
right  debited.  ""The  items  in  the  Sundries  columns  are  to  be  posted  separately,  those  on  the 
left  side  credited,  and  those  on  the  right  debited.  "  In  posting  to  the  Cash  account  in  the 
Ledger,  the  difference  in  the  cash  balances  only  is  to  be  posted.  "  If  the  balance  of  cash  on  hand 
is  less  than  at  the  last  posting.  Cash  account  is  to  be  credited  with  the  difference;  "  if  more, 
IS  to  be  debited.  To  prove  the  cash,  "add  together  the  footings  of  all  of  the  columns  on  the  left  side 
of  the  Cash  Book,  and  the  amount  will  be  the  total  debit  of  Cash;  "^then  add  together  the  footings  of 
all  of  the  columns  on  the  right  side,  and  and  the  amount  will  be  the  total  credit  of  Cash.  *•  The 
difference  between  these  two  amounts  will  l)e  the  balance  of  cash  on  hand,  "  which  is  found  by  adding 
the  cash  in  safe  and  the  balance  in  bank  together. 

BILL   BOOK. 

''The  Bill  Book  is  to  be  kept  as  an  auxiliary  book,  the  same  as  heretofore.  *•  It  may  be  kej>t  as  a 
principal  book;  but  as  a  rule  the  entries  in  it  are  so  few,  comparatively,  that  most  book-keepers 
prefer  to  journalize  such  entries. 

TRIAL  BALANCE. 

*"The  form  of  Trial  Balance  shown  on  })age  134  is  called  a  Continued  Trial  Balance,  and  *Ms 

designed  to  save  the  time  and  labor  consumed  in  re-copying  the  titles  of  the  various  accounts  whenever 

a  Trial  Balance  is  to  be  taken. 

LEDGER   INDEX. 

A  common  form  of  Ledger  Index  is  illustrated  on  page  131.   "A  convenient  jdan  for  such  an 

Index,  if  the  number  of  accounts  is  not  too  great,  is  to  arrange  the  names  alphabetically,  as  shown  in 

the  form  on  page  131,  written  upon  a  stiff  card  of  suitable  size,  which  can  stand  in  fnmt  of  the  j>erson 

who  is  posting,  making  it  much  easier  to  be  referred  to  than  the  ordinary  form  of  Index.  **  When  the 

number  of  accounts  is  very  large,  a  Vowel  Index  is  generally  employed. 


12S 


THEORETICAL    AND    PKACTICAL    BOOKKEEPING. 

JOURNAL 

OCTOBER.   188-. 


DATE. 


Oct. 


» 


» 


10 


5> 


Folio. 


61 

61 
61 
61 
62 


61 
61 
62 
62 

61 
62 
63 

63 

61 

63 

61 
62 

63 


63 
62 

64 

61 
65 

64 

63 

62 

64 

63 

62 

63 

61 
62 

64 


II.  0.  Fullor  and  Stiidciit  form  a  ('()-|)artiu'i'shij) 
this  day,  uiuUt  the  linii  name  of  FuHer  iS^  Stu- 
dent, to  en^'ago  in  the  AVholesale  Business  of 
Wooden  Ware  and  (Irocers'  Sundries. 

The  partners  are  to  invest  eiiually,  and  share 
equally  in  gains  and  losses.  An'  interest  ac- 
count is  to  be  kept  between  the  i)artuers. 


Sundries, 

Bills  Receivable, 


To  H.  0.  Fuller, 

Invested  as  follows: 
Carter's  note,  })er  B.  B. 
Ilawley  &( 'o. 's  note,  per  B.  B. 
Interest,  On  above  to  date, 

Cowles  &  Ilutchings,  On  account, 
Olean. 

Sundries,  To  Sundries, 

Student  invested  as  follows: 
Bills  Receivable,  Leighton's  note,  i)er  B.  B. 

Interest,  On  above  to  date, 

W.&  E.Morgan, City,  On  account, 
To  Bills  Payable,         Note  to  Fulton,  i>er  B.  B., 

assumed  by  tlie  tirni. 
Interest,  On  above  to  date, 

S.  W.Si(ldons,City,  On  account, 
Lorrain  Mfg.  Co.,     '*         '* 

New  York, 
Brown  Bro's  &  Sea- 

ver,  Eastport,        "  ** 

Student,  Net  Investment, 

To  Byron  Yailc,  Inv.  Oct.  1,  60  days, 

Toronto, 

liills  Receivable,  Rec'd  note  to  a])i)ly  on  (^/c. 

To  W.  &  E.  Morgan,  per  B.  B. 

To  Scovell,  Hodges  & 

Co.,  New  York,       Inv.  Oct.  2,  15  days. 

Brown  Bro's  &  Seaver,  Gave  them  note  })er  B.  Ji.  on 
To  Bills  Payable,  account. 

ToF.M.Reed,Bo8ton,  Inv.  Oct.  3,  90  days. 

Bills  Receivable,  Ree'd   note    i)er    B.    B.,   for 

To  B.  N.  Achard,  Mdse.  as  i)er  S.  B. 

To  Hopkins  «&  Weeks,  Inv.  Oct.  4,  60  days, 

Baltimore. 
Scovell,IIodge8&  Co.  Gave  them   note  in  full  for 
To  Bills  Payable,  Inv.  Oct.  2, 

To  Geo.  P.  Osgood,     Inv.  Oct.  7,  30  days, 

Chicago. 
Brown  Bro's  dfcSeaver,  Remitted  them,  on  "/r,  draft 
To  Cowles  &  Hutch-     at  30  davs  on  V.  &  H. 


ings, 
To  Byron  Vaile, 


Inv.  Oct  7,  60  davs. 


Bills  Receivable,  RecM   )u)te  to  ajjply  oji  ^j^, 

To  W.  &  E.  xMorgan,      per  B.  B. 


MDSB.  Dli. 


612 


25 


812 


1540 


1316 


216 


376 


4875 


34 


70 


50 


88 


38 


8UND8.  DR. 


30(> 

500 

7 

2556 


30f»0 

30 

2014 


33 

14 


500 


100 


81 


66 


812    34 


100 


300 


10302 


22 


8UNDS.  CR. 


3363 


47 


600 

8 
307 
490 


275 
3363 

612 


500 
812 

100 
1540 

81 
1316 

812 
216 

100 
376 

300 


50 
44 
25 


47 
25 


34 


15177 


71 


75 

70 

34 

50 


88 


60 


THEORETICAL    AND    PKACTICAL    BOOKKEEPING. 

SALES  BOOK. 

OCTOBER,    188-. 


129 


Oct. 

3 
3 

65 
65 

Frank  Goodsi)eed,  Waverly. 

1  doz.  No.  1  0.  Choj:*.  Trays, 

2  Glass  Cheese  Safes, 
10  Nests  F.  Pails, 

F.  E.  AVarren,  New  Rochelle. 

3  doz.  N.  D.  Z,  Wash  Boards, 
5    "     E.  S.  Z. 

5  M  No.  4  Paper  Bags, 

3  doz.  12-in.  B.  Bowls, 

4  "     Cov.  W.  D.  Baskets, 
2    "     0.  C.  Travs,  No.  2, 

n  "     No.  10  Feather  Dusters, 
1    ''     No.  12 

5. 

4.50 
1.25 

2.50 
1.75 
1.75 
10;^ 

1.75 
2.50 
5. 

20. 

26.50 

8 

30 

26 

75 

88 

50 
50 

5 

9 

12 

7 
8 

7 

5 

10 

10 

50 

50 
75 

87 
25 

26 

5C 

56 

25  and  10  ^ 

18 

36 

38 
27 

14 

10  gro.  Gates'  Matches, 

2.70 

6  Broom  Racks, 

2.50 

15 

129 

5) 

3 

65 

Larkin  &  Sprong,  Groveland. 
2  doz.  Wood  Shovels, 
25  lbs.  Cotton  Twine, 
2  doz.  No.  3  Wood  Scoops, 

30  davs. 

7.50 

.24 

4.50 

15 
6 
9 

3i» 

5 

65 

B.^N.  Achard,  Scipio.                      Note 
10  doz.  2-hoop  Pails, 
3    -     II.  II.  Tubs, 

2  *'     Com.  H.  Tubs, 

3  *'     Clothes  Pounders, 

per  B.  B. 
2. 

8.75 
8.50 
2. 

20 

26 

17 

6 

25 

10    "    Rolling  Pins, 

1.25 

12 

50 

81 

75 

» 

65 

Larkin  &  Sprong, 

12  doz.  lioyal  S.  Dressing, 
4  gro.  Dixon  S.  Polish, 
3  doz.  qts.  University  Ink, 

30  davs. 
1." 

6.00 
6.00 

18 

12 
24 

% 

10,'^ 

1 

80 

16 

20 

52 

20 

>> 

6G 

AVelch  &  Dow,  Fairport. 
6  gro.  W.  Crystal, 
50  boxes  Cravon, 
25  gro.  K.  Wicks, 

Cash. 

2.75 

.07 

.40 

16 
3 

10 

50 
50 

30 

8 

65 

Frank  Goodspeed. 

2  doz.  N.  C.  Wringers, 

3  "     W.  Shovels, 
5    ''     H.  H.  Tubs, 

2  Oil  Tanks, 

4  doz.  B.  Baskets, 

3  "     H.  Brushes, 

5  gro.  Kinning's  Bluing, 

45  days. 
45. 

7.50 
8.75 
16. 
25  ^ 

7.50 

6. 

8. 

32 

8 

90 
22 
43 

24 
SO 
18 
40 

50 
75 

268 

25 

9 

06 

Welch  &  Dow. 

4  doz.  U.  Ink, 

4    '*     H.  H.  Tubs, 

6. 
10^ 

8.75 

24 
2 

40 

21 
35 

60 

1 

i 
i 

5    ''     W.  Shovels, 

7.50 

1 

1 

37 

50 

94 

IC 

1 

64 

712 

31 

1 

130 


THEOKPn^ICAL    AND    PRAtmOAL    BOOKKEEPING. 


CASH   BOOK. 
OCTOBER.   188-. 


BATK. 

F<ilio. 
61 

CASH 

TO                        81INDRIK8. 

SUNDRIES. 

MD8K. 

BIL.L8  RBC. 

1H8COUNT. 

Oct. 

1 

H.  v..  Fuller, 

Cash  paid  in, 

2636 

53 

yy 

61 

Student, 

On  deposit  in  C.  Bank, 

2636 

53 

2 

Mdse. 

Drawer  sales. 

95 

48 

3 

Discount, 

B.  Vaile, 

30 

61 

4 

Bills  Receivable, 

Leigh  ton's  note  paid. 

3000 

» 

61 

Interest, 

On  above  note, 

31 

50 

» 

Mdse. 

Drawer  sales, 

21 

19 

5 

*  k 

i ,               a 

62 

10 

>• 

66 

Welch  &  Dow, 

Cash  sale  per  S.  B. 

30 

6 

Bills  Heceiviible, 

Hawlev  &  Co.'s  note  paid, 

500 

yy 

61 

Interest, 

On  above  note. 

^ 

75 

8 

65 

Frank  Goodspeed, 

Inv.  3d  inst. 

^ZiS 

50 

j> 

Mdse. 

Drawer  sales. 

52 

12 

»> 

1 

Bills  Receivable, 

Carter's  note  paid, 

1 
j 

300 

10 

65 

Larkin  &  Sprong, 

Inv.  Oct.  3, 

30 

1 

yy 

Discount, 

F.  M.  Reed, 

1      38 

52 

»3gs 

8  1 

330 

•  a 

3t00 

a» 

1  3 

64 

Mdse. 

230 

89 

1 

61 

Bills  Receivable, 

3800 

j 

11 

66 

Balance, 

Discount, 

69 

13 

83 
05 

1 

9498 

Oct. 

6149 

1 

FIRST  PAGE. 


Oct.  1.    Balance, 
•'     2.    Deposited, 

No....l:_ 

Date pet.  3'  jiS^- ... ._. 

2^0    Wm.  Strong.  _ 

Pq^     Rent  for  October. 
Amouftt 


CHECK  BOOK  STUB. 


No. ?,._ 

Date    ^^"^'1' 

y^     College  Bank. 


Ppy     Draft  remitted  to  Vaile. 
Amount —  


2636 
2000 

4  0  30 


125 

4S1  1 


583 

30  3  8 


53 


93 


t3 


Oil 

4  4 


SECOND  PAGE. 


Oct.  4.    Deposited, 
**     9.    Note  favor  of  Fulton  paid, 
''  10.    Deposited, 

No. ?: 

Date ?^Li?^ 

7'^_F.  M.  Reed. 

Por     ^^  account. 

Amount 


39S8 

2500 

•  438 

609 

S8  1  9 

500 

6319 


1502 

4  S  1  0 


44 
4  4 

30 

1  4 
1  4 


19 
0  5 


THEOKETICAL    AND    PRACTICAL    BOOKKEEPING. 


131 


CASH   BOOK. 

OCTOBER,   188-. 


1»ATK. 

Folio. 

SUNDRIES 

TO                                 CASH. 

SUNDRIES. 

EXPEKSK. 

DI&COCKT. 

Oct. 

2 

Expense, 

Office  Safe,  200;  Books,  37.50 

i 

237 

50 

i 

3 

63 

Lorrain  Mfg.  Co. 

On  account. 

100 

1 

y 

E.xpense, 

Rent  for  October, 

125 

,. 

63 

Byron  Vaile, 

Inv.  Oct.  1, 

612 

25 

yy 

Expense, 

Exch.  on  draft. 

1 

45 

4 

62 

S.  W.  Siddons, 

On  account. 

lo: 

44 

8 

Discount, 

F.  Goodspeed, 

53 

9 

62 

Bills  Payable, 

Note  favor  Fulton, 

GOO 

j> 

61 

1  Interest, 

On  above  note, 

9 

30 

t 

10 

Discount, 

Larkin  &  Si)rong, 

30 

» 

64 

F.  M.  Reed, 

Inv.  Oct.  3, 

1540 

71 

Expense, 

Coal  for  office. 

15 

30 

2969 

70 

3  7  9       25    j 

%* 

66 

Expense, 

379 

25 

i 

Discount, 

83 

78 

3349 

66  ! 

Balance, 

In  Bank,                       4.«^in.95 

: 

- — - 

••  Safe,                           1^32.10 

« 

6149 

05 

83 

949S 

LEDGER    INDEX. 


Achard,  B.  N.,  65. 


B 

Bills  Receivable.  61. 
Bills  Payable,  62. 
Brown  Bro's  &  S.,  63. 


Cowles  &  HutchingvS,  62 
Cash,  66. 


Discount,  66. 


Expense,  ^^S. 
Eaton,  M.  M.,  67. 


Fuller,  II.  G.,  61. 


(io(«lspeed.  Frank,  65. 
(Jardner,  \Vm.,  67. 


H 

Hopkins  &  Weeks,  64. 
Hackett  &  Brisbain,  6(J. 


I,  J 
Interest,  61. 


Lorrain  Mfg.  Co.,  63. 
Larkin  &  Sprong,  65. 


LEDGER    INDEX. 


M 

^lorgan,  W.  &  E.,  62. 
Merchandise,  04. 


N 


Osgood,  Geo.  P.,  64. 


Reed,  F.  M.,  64. 
Richardson,  R.,  67. 


Student,  61. 
Siddons,  S.  W.,  62. 
Scovell,  H.  &  Co.,  63. 


Tilden  &  Breme,  67, 


u 


Vaile,  Byron,  ••.'J. 


w 

Warren.  F.  E.,  65. 
Welch  &  Dow,  66. 


X.  Y.  Z 


.• 


132 


188- 
Oct. 


1 

3 

5 

10 


188- 
Oct. 


188- 
Oct. 


1 
9 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 

LEDGER. 

H.  G.  FULLER. 


188- 

Oct. 

1 

J. 

50 

3363 

47 

>' 

C.  B. 

30 

2636 

0  0  0  0 

53 

0  0 

STUDENT. 


188- 
Oct. 

1 

BILLS   RECEIVABLE. 


188- 

J. 

50 

300 

Oct. 

10 

*  > 

t  < 

500 

« 

<  ( 

3000 

(( 

51 

500 

t   t 

(( 

81 

75 

t  • 

i( 

300 

488  1 

7  9 

INTEREST. 


188- 

J. 

50 

(V 

33 

Oct. 

1 

i< 

«  i 

30 

4 

C.  B. 

30 

48 

30 
as 

6 

COWLES  &  HUTCHINGS.  Glean. 


J. 


50 


2556 


188- 
14     Oct. 


9 


J. 
C.  B. 


50 
30 


3363 
2<»36 

8  0  0  0 


47 
53 

0  0 


C.  B. 


30 


J. 
C.  B. 


a 


J.    51 


3800 


50 

8 

30 

31 

t  < 

47 

50 
50 
75 

75 


100 


188- 
Oct. 


188- 
Oct. 


8 


188- 
Oct. 


10 


188- 
Oct. 


THEOREllCAL   AND   PRACTICAL   BOOK-KEEPING. 


BROWN   BRO'S  &.  SEAVER,  Eastport. 


188- 

J. 

51 

100 

Oct. 

1 

{( 

it 

100 

30  0 

50 


BYRON  VAILE.  Toronio. 


SCOVELL.   HODGES  &  CO..   New  York. 


51 


812 


34 


188- 
Oct. 


4    Inv.  Oct.  2,  15  ds.        J. 


51 


F.   M.   REED,   Boston. 


C.  B. 


30 


1540 


71 


188- 
Oct. 


5    111  v.  Oct.  3,  90  ds.       J. 


51 


B.  N.  ACHARD,  Scipio. 


S.  B. 


21 

81 

75 

188- 
Oct. 

5 

J. 


51 


HOPKINS  &  WEEKS,    Baltimore. 


188- 
Oct. 


Inv.  Oct.  4,  60  ds.       J. 


51 


GEO.   P.  OSGOOD,  Chicago. 


188- 
Oct. 


9 


Inv.  Oct.  7,  30  ds.        J. 


133 


188- 

188- 

Oct. 

3 

C.  B. 

30 

612 

25 

1  Oct. 

2 
10 

Inv.  Oct.  1,  60  ds. 

J. 

51 

612 
376 

•  •0 

25 

88 

13 

812 


34 


1540 


71 


81 


75 


1316 


70 


51  I      216 


50 


^ 


188- 
Oct. 


188- 
Oct. 


188- 
Oct. 


W.  &.  E,   MORGAN,  City. 


188- 

50 

2014 

()G 

Oct. 

3 
10 

BILLS  PAYABLE. 


188- 

188- 

Oct. 

9 

C.  B. 

30 

600 

i  Oct. 

1 
4 

8 

S.  W.   SIDDONS,  City. 


C.  B. 


30 


107 


44 


188- 
Oct. 


LORRAIN    MFG.  CO..   NewYoik. 


C.  B. 


30 


100 


188- 
Oct. 


J. 


51 

if 


50 


J. 


50 


500 
300 

8  0  0 


J. 

50 

600 

ii 

51 

100 

•  *• 

k< 

812 

34 

1513 

34 

307 


44 


490 


25 


188- 
Oct. 


10 


188- 
Oct. 


188 
Oct. 


45  ds 


5 


30  ds. 


MERCHANDISE. 


J. 


51 

4875 

38 

188- 
Oct. 

10 

S.  B. 

22 

712 

31 

C.  B. 

30 

230 

89 

•  4  3 

>• 

FRANK   GOODSPEED,  Waverly. 


188- 

S.  B. 

20 

26 

50 

Oct. 

8 

(( 

21 

268 

304 

25 

7  5 

F.  E.  WARREN,   New  Rochelle. 


188- 

S.  B. 

20 

30 

Oct. 

10 

i( 

21 

52 

82 

20 
a  • 

C.  B. 


30 


C.  B. 


30 


26 


50 


30 


* 


134 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


WELCH   &   DOW,    Fairport. 


188- 
Oct. 


ISS- 

S.  B. 

22 

30 

Oet. 

5 

(( 

(( 

94 

]  34 

10 
1  0 

C.  B. 


30 


30 


DISCOUNT. 


188- 
Oct. 


10 


C.  B. 


30 


83 


188-1 
Oct.    10 


C.  B. 


30 


01  > 


13 


EXPENSE. 


188- 
Oet. 


10 


C.  B. 


30 


379 


I 


25 
CASH. 


188- 
Oct. 


10 


C.  B. 


30 

0149  05 

It  is  customary  in  business  to  post  the  items  from  tlie  various  books  every  day,  and  after  posting 
to  review  the  work,  re-examining  and  re-ehecking  every  entry,  to  detect  any  error  which  may  have 
been  made  in  the  work,  and  to  avoid  if  possible  a  *•  refractory"  trial  bahmce  at  the  end  of  tlie  month. 

The  foHowing  phm  is  sometimes  substituted  for  tlu^  re-checking  process,  and  proves  very  effective, 
especially  where  the  book-keeper  is  provided  with  an  assistant: 

A  sheet  of  paper  or  card,  called  a  *'  Check  Slieet,"  or  "  Check  Card,"  of  about  foolscap  size,  ruled 
in  narrow  columns,  is  provided  for  each  book  from  which  posting  is  to  be  done.  Before  tlie  work  of 
posting  begins,  the  assistant  enters  from  the  Index  the  Ledger  folio  against  each  amount  which  is  to 
be  posted.  He  then  finds  the  account  in  the  Ledger,  and  the  book-keeper,  after  observing  that  he  has 
turned  to  the  right  account,  posts  the  entry,  checking  it  thus  \/  in  the  book  from  which  it  was  posted. 
After  checking  the  entry,  he  takes  a  second  look  at  the  amount  ii><  it  standx  in  the  Ledger,  and,  while 
the  assistant  is  finding  the  next  account,  he  enters  it  upon  the  Check  Siu^et  corresjwnding  with  the 
book  from  which  it  was  ])osted.  At  the  end  of  the  day  the  footings  of  the  several  sheets  and  the 
footings  of  the  corresponding  books  must  of  course  agree. 

The  above  plan  is  almost  an  absolute  check  upon  omissicms,  upon  a  transimsition  of  figures  and 
upon  posting  to  the  Avrong  account. 

The  illustrations  given  below  represent  the  Check  Sheets  of  the  Journal,  Sales  Book  and  Cash 
Book  for  the  previous  ten  days'  posting. 


JOURNAL    DEBIT 
CHECK   SHEET. 


300 

500 

7 

2550 

3000 

30 

2014 

500 

100 

81 

812 

100 

300 

10303 


33 
14 


00 


34 


33 


JOURNAL 

.  CREDIT  1 

CHECK  SHEET. 

3363 

47 

1 

15177 

60 

600 

8 

50 

307 

44 

490 

25 

275 

3363 

47 

612 

25 

500 

812 

34 

100 

1540 

;i 

81 

1310 

70 

812 

34 

210 

50 

100 

370 

88 

300 

1  »1  77 

a  0 

SALES   BOOK    DEBIT 
CHECK   SHEET. 


26 
129 
30 
81 
52 
30 
268 
94 

7  1  3 


50 
51 

75 
20 

25 
10 

31 


CASH  DEBIT 
CHECK  SHEET. 


2636 

2636 

31 

30 

7 
26 
30 

>3»S 


53 
53 
50 

75 
50 

81 


CASH  CREDIT 
CHECK  SHEET. 


100 
612 
107 
(500 
9 
1540 

3  0  8  9 


25 
44 

30 
71 

7  0 


Folio 

01 
61 

01 
61 
62 
62 
62 
02 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


CONTINUED  TRIAL  BALANCE. 


135 


H.  G.  Fuller, 

Student, 

Bills  Receivable, 

Interest, 

Cowles  &  Ilutchings, 

W.  «&  E.  Morgan, 

Bills  Payable, 

S.  W.  Sfddons, 

Lor  rain  Mfg.  Co. 

Brown  Bro's  &  Seaver, 

Byron  Vaile, 

Scovell,  lIo(lges  «&  Co. 

F.  M.  Reed, 

Hopkins  &  Weeks, 

Geo.  P.  Osgood, 

Merchandise, 

Frank  Good  speed, 

F.  E.  Warren, 

Lark  in  &  Sj)r<mg, 

B.  N.  Achard, 

Welch  &  Dow, 

Discount, 

Ex])eiise, 

Cash, 


Hood  &  Mevers, 
S.  M.  Smith, 
Hackett  &  Brisbain, 
R.  Richardson, 
Tilden  &  Breme, 
M.  M.  Eaton, 
Wm.  Gardner, 


October  10. 


4681 

40 

2550 

2014 

600 

107 

100 

200 

012 


4875 

294 

129 

82 

124 

379 
0149 


75 
03 
14 
06 

44 


25 


38 
75 
51 
20 

10 
83 
25 
05 


6000 
6000  1 

3800; 

47  75 
100  1 
800  I 
1512  I  34 
307  44 
490  1  25 
275 


October  20. 


989 


1310 

210 

943 

26 

30 

30 

69 


13 


70 
50 
20 
50 


13 


300 

500 

5417 

40 

2550 

2014 

700 

107 

290 

200 

812 
1540 

210 
7390 
380 
217 
197 


8 

479 

6149 


82 
218 
121 


25 

03 
14 
00 

44 
25 


34 
71 

50 
39 

01 
95 


90 


05 


75 


7000 

6000 

4381 

47 

700 

800 

1612 

307 

490 

275 

948 

2781 

677 

2475 

294 

129 

82 


136 


202 


50 
498 


75 


34 
44 
25 


61 
65 

25 
89 
75 
51 
20 


32 


80 


40 


October  31. 


6917 
53 


25 
63 


1 1503 


28 

577 

6001 


22 


78 
96 
32 


5607 
50 


25 

08 


4490 


231 
262 


04 


88 
86 


STATEMENT    OCTOBER   31.   188-. 


RESOURCES. 

Bills  Receivable,   1250  00 

Mdse.  Inventory, 7908  33 

Expense.     "          200  00 

Cash, 0398  40 

Personal  Accounts, 640  80 


10457  59 


LIABILITIES. 

Personal  Accounts, 3474  41 

Fuller  s  Net  Investment, 6701  42 

h  Net  Gain, 391  67 


a 


"       Present  Worth, 7093  09 

Student's  Net  Investment, 5498  42 

^  Xet  Gain,-. 391  67 


tt 


ct 


Present  Wortli, 5890  09 


16457  59 


I  \ 


136 


THEOBETICAL    AND    PRACTICAL    BOOKKEEPING. 


OCTOBER.  188-. 

1.    H.  G.  Fuller  and  Student  form  a  co-partnership  this  day,  under  the  firm  name  of  Fuller  &  Student, 
to  engage  in  the  wholesale  business  of  Wooden  Ware  and  (Jrocers'  Sundries. 
Tlie  Co-})artnership  articles  this  day  executed,  provide  that  each  j)artner  shall  devote  his  entire 
time  to  the  business;  that  the  gains  and  losses  shall  be  divided  equally,  and  that  an  Interest 
account  shall  be  kei)t  between  the  partners. 

Note. — Make  the  above  as  a  memorandum  iu  your  Journal. 

H.  G.  Fuller's  investment:  Cash  paid  in,  2';3G.53  {C.  B.);  T).  G.  Carter's  note,  dated  September 
5  last,  at  30  days,  jjayable  at  City  Bank,  3(K).0()  (,/.  and  H.  B.)\  Hawk-y  &  Co.'s  note  dated  July 
5  last,  at  90  days,  payable  at  First  National  Hank,  with  interest,  500.00  {J.  and  B.  B.);  Interest 
accrued  to  date  on  H.  &  Co.'s  note  (/.);  Cowh's  &  Hutchings,  Ok'an,  owe  on  account, 
2556.14  (J.). 

Note. — Wliile  it  is  expected  that  you  will  Im  obliged  to  refer  ocejisionally  to  the  forms  as  indicated  in  the  transac- 
tions by  the  initial  letters:  J.  Journal,  S.  B.  Sales  Book,  Ck.  11  Check  Book.  C.  B.  Cash  Book,  and  B.  B.  Bill 
Book,  it  is  desirable  that  you  do  so  oidy  when  necessjiry.  performing  the  work  as  nmch  as  possible  from  the 
memoranda,  aided  by  the  explanations  for  the  various  books  given  on  page  127.  In  every  case  decide  how  you 
think  the  entry  shoidd  be  made  before  consulting  the  forms. 

Student's  investment:  On  deposit  in  College  Bank,  to  the  credit  of  the  firm,  2036.53  {0.  B.  and 
Ck.  B.  See  note  h('low)\  E.  B.  r^eigh ton's  note  dated  August  2iul  last,  at  60  days,  indorsed 
by  W.  D.  Soules,  i)ayable  at  Traders'  Bank,  with  interest,  3000.00  (,/.  and  B.  B.);  Interest 
accrued  to  date  on  above  note  (J.);  W.  &  E.  Morgan,  city,  owe  on  account,  2014.66  [J.). 

Note.— In  the  absence  of  a  Check  Book,  a  form  for  the  Check  Book  Stub  may  l)e  ruled  on  a  sheet  of  foolscap  paper. 

Student's  liabilities:  Note  favor  Giles  P.  Fulton,  dated  July  8  last,  at  90  days,  i)ayable  at  College 
Bank,  with  interest,  600.00  (J.  and  B.  B.);  Interest  accrued  to  date  (./.);  due  the  following 
firms  on  account:  S.  W.  Siddons,  city,  307.44;  Lorrain  Manufacturing  Co.,  New  York, 
490.25;  Brown  Bros.  &  Seaver,  Eastport,  275.00  (J.). 

2.  Buy  for  cash,  Office  Safe,  200.00;  Office  Books,  37.50.     {C.  B.) 
Deposit  in  College  Bank,  cash,  2000.00.     {Ck.  B.) 

Note. — No  entry  is  made  in  the  Cash  Book  for  the  reason  explained  28-29  page  127. 

Receive  Mdse.  from  Byron  Vaile,  Toronto,  as  ]K'r  Invoice  October  1,  on  60  days,  5^  oflF  in  10  days, 
612.25.     (/.) 

Note. — See  Business  Forms  on  last  pages  of  text  book,  for  illustration  of  letter  ordering  the  above  invoice,  also  see 
explanations  4-13  page  127. 

Sales  for  cash,  per  drawer,  95.48.     {C.  B.) 

3.  Pay  Lorrain  Mfg.  Co.  cash  on  «^,  100.00.     (C.  B.) 

Pay  Wm.  Strong  rent  of  store  one  month  in  advance,  by  your  check  on  College  Bank,  125.00.      {C. 
B.  and  Ck.  B.) 
Note. — See  expiations  26-80  page  127. 

Sell  Frank  Goodspeed,  Waverly,  1  doz.  No.  1  Oval  C'hopi)ing  Trays,  @  5.00;  2  Glass  Cheese  Safes, 
(a)  4.50;  10  nests  F.  Pails,  @  1.25.     {S.  B.) 

Note. — All  sales  on  60  days  time  unless  otherwise  noted.  • 

Sell  F.  E.  Warren,  New  Kochelle,  3  doz.  Novelty  T).  Z.  Washboards,  @  2.50;  5  doz.  Eagle  S.  Z. 
Washboards,  @  1.75;  5  M  No.  4  Pa])er  Bags,  @  1.75,  less  10;^;  3  doz.  1  i  incli  Butter  Bowls, 
@  1.75;  4  doz.  Cov.  W.  1).  Baskets,  @  2.50;  2  doz.  O.  C.  Trays  No.  2,  @  5.00;  li  doz.  No. 
10  Feather  Dusters,  @  20.00  and  1  doz.  No.  12,  @  26.50,  less  25  and  10^;  10  gro.  (Jates' 
Matches,  @  2.70;  6  Brocmi  Racks,  @  2.50.     {S.  B.) 

Note. — See  Business  Forms  on  last  pages  of  the  text  IwK^k  for  illustration  of  above  invoice. 

Receive  of  W.  &  E.  Morgan  tlieir  note  at  10  days,  i)ayable  at  Traders'  Bank,  on  ^fc,  50t).0O.  {J.  and 
B.  B.) 

Note. — Care  must  be  exercised  in  making  the  entries  in  the  .Tournal  and  Cash  Book,  or  errors  will  be  made  by 
placing  amounts  iu  the  wrong  columns. 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


137 


3.  Buy  a  New  York  draft  at  i^  exchange,  and  remit  to  Byron  Vaile  for  Invoice  September  30,  612.25, 

less  5^.     Give  your  check  on  College  Bank  to  cover  the  draft  and  exchange.     ( C.  B.  and 

Ch.  B.) 
NOTE.-See  Business  Forms  on  last  pages  of  the  text  book  for  illustration  of  letter  accompanying  the  above  remit- 

tance. 
Sell  Larkin  &  Sprong,  Groveland,  30  days,  2  doz.  Wood  Shovels,  @  7.50;   25  lbs.  Cotton  Twine, 

@  24c.;  2  doz.  No.  3  Wood  Scoops,  @  4.50.     {S.  B.) 

4.  Pav  S.  W\  Siddons,  cash  on  %  107.44.     (6^  B.) 

Receive  Mdse.   from  Scovell,   Hodges  &  Co.,  New  York,  i)er  Invoice,  October  2.   on  15  days. 

812.34.     (/.) 
Receive  cash  for  a  note  due  to-day.     {C.  B.  and  B.  B.) 
Deposit  cash  in  College  Bank,  2500.00.     {Ck.  B.) 
Salesfor  cash,  per  drawer,  21.19.     {G.  B.) 
Give  Brown  Bros,  k  Seaver  your  note  at  10  days,  payable  at  College  Bank,  on  ^jc,  100.00.   {J.  and 

B.B.) 

5.  Receive  Mdse.  from  F.  M.  Reed,  Boston,  per  Invoice  October  3,  on  90  days,  1540.71.     (/.) 

Sales  for  cash,  per  drawer,  62.10.     {C.  B.) 

Sell  B.  N.  Achard,  Scii>io,  on  his  note  at  10  days,  payable  at  College  Bank,  10  doz.  2-IIoop  Pails, 
@  2.00;  3  doz.  Heavy  Hoop  Tul)s,  @  8.75;  2  doz.  Com.  Hoop  Tubs,  @  8.50;  3  doz.  Clothes 
Pounders,  @  2.00;  10  doz.  Rolling  Pins,  @  1.25.     {S.  B.,  J.  and  B.  B.) 

Note.— Bills  Receivable  instead  of  Achard  might  have  been  debited  in  the  Sales  Book,  and  then  no  Journal  entry 
would  have  been  required.  As  now  made  the  entries  could  be  checked  in  both  Sales  Book  and  J(.urnal 
to  obviate  the  necessity  of  opening  an  account  with  Achard  in  the  Ledger.  If.  as  in  this  case,  however, 
it  is  desired  to  know  at  the  end  of  the  year  the  amount  of  goods  sold  to  a  customer,  it  is  better  to  open  an 
account  with  him  and  post  all  bills,  even  though  paid  for  at  the  time  of  purchase. 

Sell  Larkin  &  Sprong,  30  days,  12  doz.  Royal  Shoe  Dressing,  @  1.00;  4  gro.  Dixon's  Stove  Polish, 

@  6.00;  3  doz.  qts.  University  Ink.  @  6.00,  10^  off.     {S.  B.) 
Sell  Welch  &  Dow,  Fairport,  for  cash,  6  gro.  Wasliing  Crystal,  @  2.75;  50  boxes  Crayon,  @  7c.; 

25  gro.  No.  2  Kerosene  Wick,  @  40c.     {S.  B.  and  C.  B. ) 

Note.  —See  note  under  sale  to  B.  N.  Achard,  above. 

6.  Receive  cash  for  a  note  due  to-day.     ( C.  B.  and  B.  B. ) 

7.  Receive  Mdse.  from  Hopkms  &  Weeks,  Baltimore,  per  Invoice  October  4,  on  60  days,  1316.70.   (J.) 

8.  Receive  from  Frank  Goodspeed,  a  draft  on  New  York  for  Invoice  3d  inst.,  26.50,  less  2^.   {C.  B.) 
Sales  for  cash,  per  drawer,  52.12.     {C.  B.) 

Receive  cash  for  a  note  due  to-day.     {C.  B.  and  B.  B.) 

Sell  Frank  Goodspeed,  on  45  days,  2  doz.  N.  C.  Wringers,  @  45.00;  3  doz.  Wood  Shovels,  @  7.50; 
5  doz.  II.  H.  Tubs,  @  8.75;  2  Oil  Tanks,  @  16.00,  less  25^;  4  doz.  Bushel  Baskets,  Oak,  (a^ 
7.50;  3  doz.  Horse  Brushes,  @  6.00;  5  gro.  Kinning's  Bluing,  @  8.00. 

Note.— Write  up  this  invoice  on  foolscap  paper.     See  Business  Forms  on  la.st  pages  of  text  book  for  illustration. 

Give  Scovell,  Hodges  &  Co.  your  note  at  10  days,  payable  at  College  Bank,  for  Invoice  October  2, 

812.34. 

9.  Receive  Mdse.  from  Geo.  P.  Osgood,  Chicago,  per  Invoice  October  7,  30  days,  216.50. 

Your  note  due  at  College  Bank,  has  been  charged  to  your  account.     {C.  B.,  B.  B  and  Ck.  B.) 
Sell  Welch  &  Dow,  4  doz.  qts.  University  Ink,  @  6.00,  less  10  j^;  4  doz.  H.  H.   Tubs,  @   8.75;  5 

doz.  W.  Shovels,  @  7.50. 
Draw  a  draft  on  Cowles  &  Hutchings,  Eastport,  at  30  days  sight,  and  remit  it  to  Brown  Bros.  & 

Seaver,  on  %  100.00.     (/.) 
10.  Receive  from  Larkin  &  Sprong,  cash  for  Invoice  October  3d,  30.00,  less  1^.     {C.  B.) 
Deposit  cash  in  College  Bank,  500.00.     {Ck.  B.) 

Receive  Mdse.  from  Byron  Vaile,  per  Invoice  October  7,  on  60  days,  376.88. 
Give  F.  M.  Reed  your  check  on  College  Bank  for  Invoice  October  3,  1540.71,  less  2^4.     {C.  B. 

and  Ck.  B.) 
Pay  cash  for  Coal,  for  Office  use,  15.30. 
Receive  of  W.  &  E.  Morgan,  their  note  at  10  days,  payable  at  Traders'  Bank,  to  apply  ou  ^, 

300.00.      {J.  and  B.  B.) 


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138 


THEOREIICAL    AND    PRACTICAL    BOOK- KEEPING. 


You  may  now  post  the  entries  for  the  foregoing  ten  days'  business.  See  explanations  and  illustra- 
tions on  page  134  for  using  check  sheets.  Give  each  account  one-fourth  of  a  page  space.  First  post 
from  the  Jouriuil.  See  4  to  8,  jjage  127,  for  instructions.  See  also  the  Journal  form  on  page  128, 
showing  the  columns  footed  and  ruled.  Use  the  Ledger  folio  to  check  the  jwsting.  Tlie  pages  of 
your  books  will  not,  of  course,  correspoiul  with  those  given  in  the  forms.  After  opening  an  account  in 
the  Ledger,  jdace  the  title  in  the  index,  together  with  the  number  of  the  page  u})on  which  it  is  oi)ened. 
See  illu8tratit)n  on  })age  131,  also  see  ex])lunations  on  i)age  127.  Next  ])ost  from  the  Sales  Book;  see 
18-15,  page  127.    See  also  form  of  Sales  Book  on  })age  129,  showing  the  Mdse.  column  footed  and  ruled. 

Balance  and  prove  the  cash  before  commencing  to  })ost  from  the  Cash  Book.  For  instructions,  see 
34-37  i)age  127.  See  form  of  Cash  Book  on  i)age8  130  and  131,  showing  the  manner  of  footing 
and  ruling  the  columns,  and  bringing  down  the  balance  of  cash  on  hand.  Cash  in  Safe,  1332.10; 
Balance  in  Bank,  shown  by  Check  Book  Stub,  page  130,  4810.95. 

After  you  have  completed  the  posting,  your  Ledger  should  correspond  with  the  one  given  on  pages 
132-3-4.  Next  take  a  trial  balance,  using  the  Continued  Trial  Balance  form  as  illustrated  on  i)age 
135.  See  40-41  j)age  127.  If  no  such  form  is  provided  in  your  Trial  Balance  book,  you  may  rule 
one.  The  Ledger  titles  are  all  to  be  entered  in  the  trial  balance;  but  those  which  balance  need  not  be 
extended.  The  footings  of  the  columns  are  not  given  in  the  form;  you  are  to  foot  aiul  i)rove 
them,  however,  as  heretofore.  You  need  not  rule  up  any  of  the  personal  accounts,  even  when 
settled  in  full,  but  continue  the  pencil  footings  until  the  end  of  the  month,  in  order  that  the  footing 
of  each  person's  account  in  the  Ledger  nuiy  show  the  entire  amount  of  goods  bought  of  or  sold  to  him 
during  that  period.     Business  men  frequently  carry  out  this  plan  through  an  entire  year's  business. 

After  completing  the  trial  balance,  continue  the  work  in  the  same  manner  as  in  the  preceding  ten 
days'  business. 

Write  up  the  business  forms  wherever  called  for  by  the  Memoranda,  and  take  particular  i)ains  with 
the  penmanshii),  spelling  and  general  appearance  of  these  documents. 

OCTOBER  188-. 

11.  Sales  for  cash  per  drawer,  65.30. 

Deposit  cash  in  College  Bank,  400.00. 

12.  Sell  M.  M.  Eaton,  Seneca,  on  his  note  at  15  days,  payahlc  at  Farmers'  Bank,  6  doz.  C.  Brooms,  @ 

3.00;  2  doz.  C.  Trays,  @  5.00;  2  doz.  N.  D.  Z.  Washboards,  (^  2.50;  10  doz.  U.  Ink,  (u)  0.00 
less  12i'^.     {S.  B.,  J.  and  B.  B.) 

13.  Student  draws  for  private  use  by  check  on  College  Bank,  500.00.     {(!.  B.  and  CTc.  B.) 

14.  Received  from  Frank  Goodspeed  casli  for  Invoice  Oct.  8,  268.25,  less  1^^. 
Leave  M.  M.  Eaton's  note  at  College  Bank  for  collection.     {B.  B.) 

Note.— In  the  column  in  the  Bill  Book  headed  "When  and  How  Di.sposed  of,"  say  "Oct.  14,  left  at  College  Bank 
for  collection." 

Receive  from  Scovell,  Hodges  &  Co.  Mdse.  per  Invoice  Oct.  9,  at  15  days,  136.27. 

Sell  F.  E.  Warren  3  doz.  Willow  Clothes  Baskets,  @  9.00;  4  doz.  Willow  Market  Baskets,  @  3.50: 

5  doz.  Cherry  Knife  Trays,  @  4.50;  3  M  Crown  Butter  Dishes,  (7b,  10.00,  less  20  ^. 
Sell  Frank  Goodspeed  5  doz.  H.  H.  Tubs,  @  8.75;  3  doz.  Busli.  Baskets,  Oak,  @  7.50;  20  Nests 

F.  Pails,  @  1.25. 

15.  Give  Lorrain  Mfg.  Co.  your  check  on  College  Bank,  on  «f,  90.25. 

Accept  Lorrain  Mfg.   Co.'s  draft  on  you  at  10  days  sigiit,  i)ayable  at  College  Bank,  favor  of  D. 

Leary,  to  apply  on  ^,  100.     (,/.  and  B.  B.) 
Pay  cash  for  Postage,  2. 75. 

Buy  of  Hood  &  Meyers,  City,  on  60  days,  Mdse.  pi-r  Invoice  Oct.  15,  178.65. 
10.    Sales  for  cash  per  drawer,  136.15. 

Give  Hopkins  &  Weeks  your  check  on  College  Bank,  for  Invoice  Oct*  7,  1310.70,  less  2^1^. 
Sell  S.  M.  Smith,  City,  on  ten  days,  10  gro.  Lead  Pencils,  @  1.00;  5  doz.  Cotton  Clothes  Lines, 
@  2.00;  10  doz.  P.  B.  Dishes,  @  5.50,  less  20,'^;  1^  doz.  Feather  Dusters,  @  20.00,  less  40^. 
Receive  from  Geo.  P.  Osgood,  Mdse.  i)er  Invoice  Oct.  12,  30  days,  400.75. 
Receive  of  Lark  in  &  Sprong,  cash  for  Invoice  Oct.  5,  52.20,  less  1^. 
Receive  cash  for  a  note  due  to-dav. 
Deposit  cash  in  College  Bank,  1500.00. 
H.  G.  Fuller  draws  for  private  use  by  check  on  College  Bank,  300.00. 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


139 


17.  Remit  Geo.  P.  Osgood  your  certified  check  on  College  Bank,  for  Invoice  Oct.  7,  210.50,  less  3  ^. 
Note.— Write  up  this  cheek  on  foolscap  paper.     See  Business  Forms,  on  last  pages  of  text  book,  for  certified  check. 

Sell  Larkin  &  Sprong  2  doz.  No.  10  F.  Dusters,  @  20.00,  less  25  and  10^;  5  doz.  H.  11.  Tubs,  @ 

8.75;  6  doz.  W  Baskets,  @  7.50. 
Sales  per  cash  drawer,  1G2.50. 
Receive  from  Cowles  &  Ilutchings  their  note  at  5  days,  payalde  at  Exchange  Bank,  to  apply  on  «t, 

GOO.  00. 
Sell  Ilackett  &   Brisbain,  Clinton,  3  doz.  N.  D.  Z.  Washboards,  @  2.50;  5  doz.  V.  K.  Trays,  @ 

4.50;  10  doz.  B.  Brooms,  @  2.00;  5  doz.  H.  H.  Tubs,  @  8.75;    10  gro.  U.  Ink.  (^  6.00,  less 

10^;  (i  doz.  B.  Baskets,  @  7.50;  2  doz.  No.  10  F.  Dusters,  @  20.00,  less  35^. 
Receive  from  F.  E.  Warren  a  draft  on  New  York  for  Invoice  Oct.  3,  129.51,  less  2^. 
Your  note  due  to-day  at  College  Bank,  charged  to  your  «/c. 

18.  Pay  Clerks'  salaries  in  full  to  date,  in  cash,  87.75. 
Deposit  in  College  Bank,  cash,  400.00. 

Give  Hood  &  Mevers  vour  check  on  College  Bank  for  Invoice  Oct.  15,  178. C5,  less  5^. 

H.  G.  Fuller  makes  an  additiomd  cash  investment  of  1000.00. 

Receive  Mdse.  from  F.  M.  Reed  per  Invoice  Oct.  14,  on  90  days,  1240.94. 

Sell  Ralph  Richardson,  Oneida,  20  gro.  G.  Matches,  @  2.70;  4  doz.  12  inch  B.  Bowls,  @  1.75;  6 
doz.  N.  D.  Z.  Washboards,  @  2.50;  2  doz.  No.  1  0.  C.  Trays,  @  5.00;  4  doz.  H.  H.  Tubs,  @ 
8.75.  Receive  his  note  at  10  days,  payable  at  College  Bank,  50.00;  balance  on  «f,  00  days. 
{S.  B.,  J.  and  B.  B.) 

Note.— Richardson  beinj?  debited  in  the  Sales  Book  121.00,  and  credited  in  the  Journal  50.00,  when  these  entries  shall 
have  been  posted,  the  difference  in  his  account  will  show  the  balance  still  due. 

Receive  cash  for  a  note  due  to-day. 
Sales  per  cash  drawer,  228.79. 

19.  Receive  cash  from  Welch  &  Dow  for  Invoice  Oct.  9,  94.10,  less  1^. 

Sell  Wm.  Gardner,  for  cash,  3^  doz.  Maud  S.  Halters,  @  7.50;  4  doz.  Curry  Combs,  @  1.50;  2 
doz.  Curry  Cards,  @  1.25;  2^  doz.  Horse  Brushes,  @  6.00. 

20.  Receive  Mdse.  from  Tilden  &  Breme,  Oswego,  per  Invoice  Oct.  17,  on  60  days,  498.40. 
Deposit  Cash  in  College  Bank,  1000.00. 

Sales  per  cash  drawer,  88.45. 

Buy  for  cash,  a  New  York  draft  at  ^  ,^  exchange,  and  remit  to  Byron  Vaile  for  Invoice  Oct.   7, 

376.88,  less5,C 
Pay  cash  for  cartage,  8.35. 

You  may  now  balance  the  Cash  Book.  The  footings  of  the  columns  on  the  debit  side  of  the  Cash 
Book  should  be  as  follows:  Sundries,  7742.86;  Mdse.,  681.19;  Bills  Receivable,  581.15;  Discount, 
67.19.  On  the  credit  side  Sundries,  3078.98;  Expense,  99.75;  Discount,  8.07.  Prove  the  cash;  see 
34-37,  page  127.     In  Safe,  422.99;  m  Bank,  as  shown  by  Check  Book,  5463.20. 

Next  i)ost  and  take  a  trial  balance,  in  accordance  with  the  directions  given  at  the  end  of  the  first 
ten  days'  business  on  pages  134  and  138.  In  posting  to  Cash  account,  enter  on  the  credit  side  262.86,  the 
]iayments  of  cash  having  exceeded  the  receipts  by  that  amount  since  the  last  posting.     See  31-33, 

page  127. 

Remember  to  place  all  new  accounts  in  the  Index  as  soon  as  opened  in  the  Ledger.  Add  new 
accounts  to  the  trial  balance,  as  show  n  on  page  135. 

After  completing  the  trial  balance,  continue  the  work  as  before. 

OCTOBER,   188-. 

21.  Accept  Lorrain  Manufacturing  Co.'s  draft  on  you  in  favor  of  themselves,  at  1  «lay  sight,  payable 

at  College  Bank,  100.00. 
Deposit  cash  in  College  Bank,  200.00. 
Sell  Frank  Goodspeed,  1  gro.  Tytler's  Axle  Grease,  @  9.00;  2  gro.  K.  Bluing,  (^i  8.00;  100  Grain 

Bags,  @  22c.  ea. ;  2  M  No.  4  Paper  B.  Dishes,  @  5.50,  less  20^. 
Your  note  due  to-day  charged  in  at  College  Bank. 


*■-•-■ — 


140 


THEORETICAL   AWD    PRACTICAL   BOOK-KEEPING. 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


141 


)       U 


22.  Receive  Mdse  from  Byron  Vailo  i)er  Invoice  Oct.  10th,  on  00  days,  075.00. 

Receive  of  W.  &  E.  Morgan  their  note  at  «0  days,  endorsed  hy  Thos  Field,  pavahle  at  Traders' 
Bank,  on  <^,  500.00. 

Note.— Draw  up  this  note  on  foolscap  paixT.     St'c  Business  Fonns  on  lust  pages,  for  illustration  of  note  with 
Endorser. 

Receive  of  S.  M.  Smith,  his  clieck  on  Flower  City  Bank,  in  payment  of  Invoice  Oct.  10,  82.00. 
Sales  for  cash,  i)er  drawer,  209.14. 

23.  Sell  S.  M.  Smith,  4  doz.  Mouse  Trai)8,  @  50c.;  6  doz.  Taylor  Mops,  @  1.50;  |  doz.  Novelty  C. 

Wringers,  @  45.00;  ^  doz.  No.  14  F.  Dusters,  @  30.00,  less  25  and  10;^. 
Receive  cash  for  a  note  due  to-day. 
Receive  F.  E.  Warren's  check  on  Farmers'  Bank,  New  Rochelle,  for  Invoice  Oct.  14,  87.50,  less 

2^. 
Ilackett  &  Brisbain  return  for  credit  2  doz.  F.  Dusters  from  Invoice  17th  inst. 

24.  Remit  Scovell,  Hodges  &  Co.  a  New  York  draft,  which  you  will  purchase  by  check  on  College 

Bank,  at  ^^  exchange,  in  payment  of  Invoice  Oct.  9,  130.27,  less  2^^. 

Note.— Write  the  above  draft  on  foolscap  paper,  and  procure  from  the  teacher  blank  letter  sheet  and  envelope,  and 
write  to  Sc-ovell,  Ibxl^^es  &  Co.,  enclosing  the  above  remittance.  See  page  77,  also  Bu.siness  Forms  on  last  pages 
of  text  book  for  illustrations.  In  folding  the  letter,  fold  it  first  from  the  bottom  to  one-half  its  length,  or  as 
far  as  is  necessary  to  tit  the  lingth  of  the  envelope,  and  then  fold  from  the  side  to  one-third  its  width,  or  as  far  as 
is  necessary  to  fit  the  width  of  the  envelope. 

Sales  for  cash,  j)er  drawer,  115.00. 

Deposit  in  College  Bank  Currency,  500.00  and  Warren's  check,  85.75.  The  bank  deducts  25c. 
for  collection  of  check. 

25.  Sell  F.  E.  Warren  10  doz.  C.  Brooms,  @  3.50;  5  doz.  IT.  II.  Tubs,  @  8.75;  8  doz.  C.  K.  Trays, 

@  4.50;  10  doz.  (jts.  University  Ink,  @  6.00,  less  12^  f^';  5  doz.  C.  C.  Lines,  @  2.00;   10  doz. 

B.  Baskets,  @  7.50;  200  Grain  Bags,  @  20  c.  ea. ;  1^  doz.  No.  14  F.  Dusters,  @  30.00.  less 

25  and  10  j^;  25  Nests  F.  Pails,  @  1.25;  5  doz.  W.  V.  Baskets,  @  9.00. 
Your  acceptance  due  to-day,  charged  in  at  College  Bank. 

Receive  Mdse.  from  Hopkins  &  Weeks  }>er  Invoice  Oct.  20th,  on  60  days,  1863.66. 
Receive  of  Cowles  &  llutchings  their  check  on  Exchange  liank,  200.00,  for  ])ayment  on  their  note 

of  600.00,  due  to-day.     They  renew  the  balance  by  giving  a  note  at  30  days,  with  interest. 

Note.— Credit  Bills  Receivable  in  Cash  Book.  200.     J:nter  the  new  note  of  400.00  in  Bill  Book,  and  opposite  old 
note  in  Bill  Book  state  how  it  was  disposed  of. 

Memorandum:  Procure  from  the  teacher  letter  sheet  and  envelope,  and  write  to  Tilden  &  Breme, 
Oswego,  ordering  the  following  Mdse.:  25  doz.  No.  1  O.  C.  Trays,  25  doz.  li.  Baskets,  15 
doz.  Barrel  Covers,  20  doz.  H.  H.  Tubs,  20  doz.  Com.  II.  Tubs,  5  doz.  Novelty  C.  Wringers, 
50  doz.  "Gem"  Pai)er  Pails,  30  doz.  *' Queen"  Paper  Pails.  {See  Business  Forms  on  last 
pages  for  illustrations.) 

27.  Receive  from  F.  Goodspeed  cash  for  Invoice  Oct.  14,  91.25,  less  2  j^. 

W.  &  E.  Morgan  present  Lorrain  Mfg.  Co.'s  sight  draft  on  you  for  100.00,  which  you  pass  to  the 

credit  of  their  account. 
Sales  for  cash,  per  drawer,  227.09. 
Sell  Ralph  Richardson  5  doz.  N.  I).  Z.  Wasliboards,  @  2.50;  10  doz.  B.  Brooms,  ((^  2.00;    5  doz. 

C.  H.  Tubs,  @  7.42;  1^  doz.  No.  12  F.  Dusters,  (^  2f;.50,  less  30  aiul  5r^;  1  doz.  Novelty  C. 

Wringers,  @  45.00;  50  Grain  Bags,  @  22c. 
Give  S.  W.  Siddons  your  check  on  College  liank,  to  a})ply  on  °lc,  100.00. 
Get  W.  &  E.  Morgan's  note  of  500.00,  received  22d  inst.,  discounted  at  College  Bank;  proceeds 

placed  to  your  credit.     {C.  B.,  Ck.  B.  and  B.  B.) 

Note.— Debit  Interest  Account  for  the  discount  on  Ihealmve  note  to  avoid  entering  it  in  the  discount  column,  which 
is  intended  for  the  discount  oji  prepayment  of  Invoices  of  Mdse,  only. 

Pay  Gas  Bill  to  date  in  cash,  5.40. 

Receive  Mdse.  from  Tilden  &  Breme  })er  Invoice  Oct.  20,  on  60  days,  1248.17. 

28.  Receive  from  F.  E.  Warren  a  draft  on  New  York  for  Invoice  Oct.  25,  398.87,  less  i^. 
Sales  for  cash,  per  drawer,  74.25. 


28.    Deposit  cash  in  College  Bank,  1000.00. 

Remit  F.   M.  Reed  a  draft  on  Boston,  which  you  will  purchase  at  College  Bank  by  check,  at  \% 

exchange,  in  payment  of  Invoice  Oct.  14,  1240.94,  less  2^  fc. 
Receive  of  Cowles  &  llutchings  to  apply  on  their  note  of  Oct.  25,  cash,  200.00. 


29. 


30. 


31. 


Note.— Draw  up  this  note  on  foolscap  paper,  and  make  the  proper  indorsement, 
for  illustration  of  note  with  indorsement. 


See  Business  Forms  on  last  pages 


Your  acceptancte  due  to-dav,  charged  in  at  College  Bank. 

Sell  Ilackett  &   Brisbain,  4  gro.  D.  S.  Polish,  @  6.00;  3  doz.  U.  Ink,  @  6.00,  less  10^;  12  doz. 

R.  S.  Dressing,  (Jt,  1.00. 
Receive  of  Ralph  Richardson  cash  for  balance  due  on  Invoices  of  Oct.  18  and  Oct.  27,  223.03, 

less  2  i. 
Sales  for  cash,  per  drawer,  319.32. 
Deposit  cash  in  College  Bank,  450.00. 
Sell  Larkin  «&  Sprong  10  doz.  Paper  Pails,  @  5.50;   360  lbs.  |-inch  Manilla  Rope,  @  16c.;  10 

doz.   Potato  Mashers,   @   75c.;   5  Oil  Tanks,  @  16.00,  less  25^;  10  doz.   Barrel  Covers,® 

5.00;  5  doz.  Bush.  Baskets,  (§  7.50;  3  M  Crown  Butter  Dishes,  @  6.00,  less  20^;  4  doz.  No. 

10  F.  Dusters,  @  20.00,  less  25  and  10  and  5  i. 
Remit  Tilden  &  Breme  a  draft  on  New  York,  which  you  will  purchase  at  College  Bank  by  check, 

at  i^  exchange,  in  payment  of  Invoices  Oct.  17  and  Oct.  26,  1746.57,  less3|^. 
College  Bank  has  collected  Eaton's  note  due  yesterday,  and  placed  same  to  your  credit  less  cost  of 

collection,  25c. 
Receive  of  Cowles  &  Hutchings,  to  balance  <^c,  cash  856.14  and  their  note  endorsed  by  D.  W. 

Powers,  at  4  months,  paya])le  at  Exchange  Bank,  with  interest,  1000.00. 
Receive  cash  of  Ilackett  &  Brisbain  for  Invoice  Oct.  17,  218.75,  less  Mdse.  returned  for  credit 

Oct.  23,  26.00,  and  2  ^  of  balance. 
Receive  cash  of  W.  k  E.  Morgan,  to  balance  «(■,  614.66. 
Sell  Wm.  Gardner,  30  days,  3  doz.   Curry  Combs,  @  1.50;  4  doz.  H.  Brushes,  @  6.00;  2  doz. 

MaudS.  Halters,  @  7.50. 
Pay  clerks'  salaries  in  full  to  date,  85.50. 
Deposit  cash  in  College  Bank,  2000.00. 
Make  an  entry  for  the  interest  ui)on  the  following  transactions  as  provided  for  in  the  copartnership 

agreement:   H.  G.  Fuller  drew  for  private  use,  Oct.  16,  300.00.     Student  drew  for  private 

use,  Oct.  12,  500.00.     II.  G.  Fuller  made  an  additional  investment,  Oct.  18,  1000.00.     (/.) 

Note  — *«  Debit  each  partner  interest  upon  amounts  drawn  out  by  him  from  the  time  of  such  withdrawal  to  the  time 
of  settlement,  and  credit  him  interest  upon  amounts  invested  by  him  from  the  time  of  such  investment  to  the 
time  of  settlement.  « It  is  unnecessary  to  compute  interest  upon  the  original  investments  when  they  are  equal, 
as  in  this  case,  because  the  interest  balance  to  each  partner's  account  would  not  be  affected  thereby. 


INVENTORIES,  OCTOBER  31,  188- 


MERCHANDISE— per  Inventory  Book, 
EXPENSE— Office  Safe, 


7968  33 
200  00 


You  may  now  prove  the  cash  and  balance  the  Cash  Book.  In  Safe,  267.46;  In  Bank,  6131.00. 
The  footings  of  the  columns  on  the  debit  side  of  the  Cash  Book  should  be  as  follows:  Sundries, 
8432.39;  Mdse,  944.80;  Bills  Receivable,  1285.50;  Discount,  95.56.  On  the  credit  side.  Sundries, 
4240.95;  Expense,  98.96;  Discount,  19.8S. 

"It  is  customary,  in  business,  to  prove  the  cash  every  day,  ^'^not  necessarily  closing  the  Cash  Book, 
as  the  columns  may  be  footed  in  pencil,  and  the  proof  taken  upon  a  separate  sheet. 

After  posting  take  a  trial  balance  and  make  a  statement  giving  the  results  of  tlie  business,  as 
shown  in  the  form  on  page  135,  after  which  close  and  rule  up  all  the  Ledger  accounts.  Before  closing 
the  Mdse.  account  close  Discount  account  into  it.  Discount  is  only  kept  here  as  a  separate  account  to 
enable  us  to  determine  the  amount  of  allowances  upon  invoices  prepaid.  If  this  information  were  not 
desired,  Mdse.  might  be  debited  and  credited  for  the  allowances  at  the  time  of  making  them. 


I- 


i  I 


i 


142 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


QUESTIONS   FOR   REVIEW. 


Page  126. — 'What  is  this  set  desigiu'd  to  ilhistratc?  MVhat  advantages  are  derived  from  the 
methods  ilhistrated,  and  how  obtained?  'For  wiiat  i)uri)ose  might  it  be  necessary  to  change  the  forms 
of  books  as  liere  used,  and  liow  could  the  change  be  made? 

Page  127. — *\Vliat  is  the  peculiar  feature  of  the  Journal  as  used  in  this  set?  *  In  what  way  is 
the  combination  of  the  two  books  effected?  "Explain  the  use  of  the  extra  column.  MIow  is 
it  posted?  MIow  are  the  items  in  the  Sundries  column  posted?  MVhat  disposition  is  made  of  the 
Invoices?  "^"  If  ])asted  in  an  Invoice  Book,  how  may  this  book  be  used?  "Explain  the  use  of  the 
Sales  book.  "  What  disi>osit ion  is  made  of  the  net  amount  of  each  sale?  "What  course  is  pursued 
with  the  last  column?  'MIow  i)osted?  'MIow  may  an  additional  advantage  be  secured  from  the 
Sales  Book?  '''Explain  the  use  of  the  Check  Book.  'Ms  it  necessary  to  open  a  bank  account  in  the 
Ledger?  "What  entry  is  made  for  a  deposit?  ^Ilow  does  this  debit  the  bank?  "What  entry  is 
made  when  a  check  is  drawn?  "  How  does  this  credit  tlie  bank?  "  Is  an  entry  to  be  made  in  the  Cash 
Book  when  cash  is  deposited?  ^*  Why  not?  "  W'hvn  checks  are  drawn  upon  the  bank,  in  what  other 
book  beside  the  Check  Book  is  the  entry  made?  Why?  "Explain  the  use  of  the  Cash  Book.  "  How 
arranged?  "'For  what  purpose?  "How  are  the  special  columns  posted?  *  How  are  the  items  in  the 
Sundries  columns  }K)sted?  "  How  is  the  cash  jjosted?  "  How  posted  if  the  balance  of  cash  is  less  than 
at  the  last  posting?  **  How  if  more?  "How  is  the  total  debit  of  cash  found?  '^The  total  credit? 
*•  What  will  the  difference  show?  "  How  is  the  cash  on  hand  found?  =»  How  is  the  Bill  Book  to  be 
kept  in  this  set?  »»Can  it  be  kept  as  a  principal  book?  Why  is  it  not  usually  so  kept?  ♦"  What  name  is 
given  to  the  trial  balance  used  in  this  set?  *'  What  advantage  is  derived  from  its  use?  "Describe  a 
convenient  form  for  a  Ledger  Index.  *^  Wlien  the  number  of  accounts  is  large,  what  form  of  Index  U 
generally  used? 

Page  1-41. — "How  frequently  is  the  cash  i)roved  in  business?  ♦*  How  may  it  be  ])roved  without 
closing  the  Cash  Book?  *MIow  is  the  interest  account  between  the  partners  ailjusted?  *'When  the 
original  investments  are  e(pial  wiiy  is  it  unnecessary  to  compute  interest  ujwn  them? 

Note. — Should  the  Uwher  consider  it  desirable  the  stJident  may  hi;  reciuired  to  draw  up  all  of  the  papers  and  forms 
in  the  foregoing  memoranda.  In  the  absence  of  an  actual  business  department  especially,  it  would  be  Ik'sI  to  make  such 
a  requirement. 

Excellent  drill  for  the  student  could  also  t>e  secured  by  requiring  him  to  continue  the  foregoing  business  for  ten  or 
twenty  days  longer,  originating  fiisojrn  tramaHioiiH.  if  this  plan  were  pursued,  an  amount  would  have  to  be  assumed  for  a 
Mdse.  inventory  at  the  time  of  closing  the  books. 


RETAILER'S  BOOKS, 


(DOUBLE     ENTRY,) 


DESIGNED  FOR  RETAIL  GROCERIES,  MARKETS,  SHOPS,  ETC. 


'  The  following  arrangement  of  books  and  records  is  designed  to  illustrate  a  popular  system  of 
book-keeping  for  a  retail  business.  While  it  does  not  strictly  conform  to  the  principles  of  Doable 
Entry  book-keeping,  inasmuch  as  the  Merchandise  account  is  not  made  to  show  all  of  the  purchases 
and  sales,  yet  the  final  results  are  just  as  accurate,  and  are  obtained  at  a  great  saving  of  time  and  labor. 

'  The  books  required  are  an  Order  Book,  Cash  Book,  Journal,  Personal  Ledger  and  Ledger.  The 
Order  Book  and  Personal  Ledger  are  used  as  auxiliary  books;  the  others  as  principal. 

The  '  Order  Book  is  a  cheap,  coarse  book,  made  usually  with  a  page  about  twelve  inches  long  and 
five  inches  wide,  and  lies  upon  the  counter.  In  it  are  entered  the  orders  as  they  are  received  during 
the  day.  *  Goods  to  be  delivered,  that  are  paid  for  when  ordered,  are  entered  regularly  in  the  Order 
Book,  and  the  word  *'  Paid  "  written  across  the  order.  *  If  not  paid,  the  items  are  entered  in  the 
purchaser's  account  in  the  Personal  Ledger  at  the  close  of  the  day's  business. 

^  The  Cash  Book  does  not  differ  from  the  form  already  illustrated,  and  is  used  as  a  principal  hook. 
It  need  not  be  closed  oftener  than  once  a  week,  or  once  a  month  The  first  column  on  the  debit  sid*} 
is  devoted  to  cash  sales  of  Mdse. 

^  The  Journal  contains  all  entries  excepting  those  made  in  the  Cash  Book.  *  The  Journal  may  be 
dispensed  with  by  using  the  C^sh  Book  as  illustrated  in  the  Cash  Method,  on  pages  110-llL 

*  The  Personal  Ledger  contains  accounts  with  customers  only,  and  is  entirely  an  auxiliary  book. 
'"  Sales  on  account  are  regarded  as  merchandise  on  hand  until  the  accounts  are  paid,  at  which  time 
Merchandise  is  credited  with  such  payments.  "  The  ordinary  Journal  ruling  is  considered  i)referablc 
for  a  Personal  Ledger  of  this  character,  as  it  affords  more  room  for  items.  "  All  statements  may  be 
made  out  from  the  Personal  Ledger  without  referring  to  any  other  book. 

'■''  The  Ledger  is  used  as  in  any  other  business. 

The  student  will  be  expected  to  post  and  take  a  Trial  Balance  at  the  end  of  the  first  week,  and 
close  the  Ledger  at  the  end  of  the  second  week.  "The  accounts  in  the  Personal  Ledger  will  have  to  be 
included  in  the  inventory  in  closing  the  Merchandise  account.  "  Xo  Bank  account  will  be  kept  in 
the  Ledger.  "The  Cash  Book  will  exhibit  all  cash  in  bank  and  on  hand,  as  illustrated  ir  the 
Wholesale  Business  on  page  13L  "  You  will  credit  Cash  when  a  check  is  given,  and  make  no  entry 
for  deposits,  except  in  the  Check  Book. 

148 


i 


M 


■Hi 


144 


TilEOIiETlCAL    AND    PRACTICAL    H()()KKP:EPING. 


.^^S'U^r 


-c^y 


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0^ 


188 
Kov. 


188- 

Nov. 


/ 

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J' 


/.^'tif^ 


r^-/-^/ 


/» 


^^'^'^z^e'^ty 


js.  a 


'z^i^  •'■^         J!. 


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7 


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JOHN   WILSON,    119   Fourth    Street. 


'}       '  ^ 


4 

6 

8 
12 


10  ll>s.  A.  C.  Siiirar.  '«;  4.}  C*.  Fish,  36 
2  J.  Coffee,  'O;  5  gul.  K.  Oil,  ts 

Cash, 

4  lbs.  Crackers,  ^\  4  lui.  Potutoes,  2<o 

1  bag  Salt,  20;  3  Kaisiiis,  y« 

1  box  Starch,  ^\  2  cans  Oysters,  «o 

1  bbl.  Apples,  200;  1  cake  Chocolate,  :« 

Cash, 

2  bas.  Peaches,  2<0;  10  B.  Sugar,  »f->;  1  j.k.  S.  Potatoes,  ♦» 

W.    L.  WOOD,   26  State  Street. 


2 
4 

5 

S 
11 

13 


3  doz.  Eggs,  «0;  10  lbs.  B.  Sugar,  ^ 

5  bu.  E.  \\.  Potatoes,  30";  2  W.  l»ails   ^o 

10  lbs.  Butter,  2^0;  5  Chi.k,.i,,  «0;  lOA.  C.  Sugar,  95 

10  G.  Sugar,  105;  5  K.  Oil,  T5;  5  C.  Fish,  40;  3  Ti,,;  Crackers, 


30 


Cash. 


4/ 


/ 


/ 


7/ 


f6 

If  *> 


f 


/J 


1  box  Soap,  415;  j  p],,  S.  Potatoes,  50.  3  ^oz.  Eggs, 

2  J.  Coffee,  70j  1  ih.  j.  Tea,  so;  1  x.  P.  Flour,  8  7^ 

Cash, 


60 


cT 


V 


/  <? 


oTi/ 


I 

31 

1 

45 

2 

76 

80 

2 

56 

1 

35 

e 

71 

5 

3 

95 

( 
1 

70 


1 

50 

3 

40 

4 

05 

•> 

■V 

50 

1 1 

45 

10 

5 

25 

9 

95 

aa 

61 

10 

»0 

rilEOKETlCAL    AND    PRACTICAL    BOOK-KEEPING. 


ORDER  BOOK. 

NOVEMBER    1.  188-. 


^rrs.  J.  11.  Smith,  18  Brown  St. 
1  lb.  Jap.  Tea,  -50 

10  "   Gran.  Sugar,  10^,  1.05 

1  gal.  N.  0.  Molasses,  .45 


W.  L.  AVood,  26  State  St. 

3  doz.  Eggs,  20,  .60 

10  lbs.  B.  Sugar,  9,  .90 

5  bu.  E.  R.  Potatoes,  60,         3.00 

2  AV.  Pails,  20,  .40 


John  Wilson,  119  Fourth  St. 

10  lbs.  A.  V.  Sugar,        9^,         .95 

4^  '*    C.  Fish,  8,  .36 

2    '*    J.  Coffee,  35,  .70 

5  gal.  K.  Oil,  15,  .75 


A.  C.  Davis,  126  Tremont  St. 
15  lbs.  G.  Sugar,  lOi,       1.58 

10    "    B.      ''  9,  -'^0 

5  bu.  Potatoes,  60,         3. 

5  lbs.  L.  liaisius,  13,  .65 


B.  J.  Brown,  38  St.  Paul  St. 

1  lb.  Y.  H.  Tea,  .48 

15  lbs.  A.  C.  Sugar,        9^,       1.43 

5    **    C.  Fish,  8,  .40 

1  gal.  S.  II.  Syrup,  .68 


F.  G.  Ransom,  98  Spring  St. 
10  lbs.  A.  C.  Sugar,        9^,         .95 
5  bu.  Potatoes,  60,         3. 

1  lb.  Jap.  Tea,  .50 

2  lbs.  J.  Coffee,  35,  .  70 


NOVEMBER    2,   188-. 

W.  L.  Wood,  26  State  St. 
10  lbs.  Butter,  25, 

5    •*    Chicken,  12, 


10    *'    A.  C.  Sugar, 


9i. 


2.50 
.60 
.95 


^[rs.  J.  II.  Smith,  18  Brown  St. 
5  bu.  Potatoes,  60,         3. 

3  doz.  Eggs,  18,  .54 

5  lbs.  Butter,  25,         1.25 


D.  Lucas,  10  Jones  St. 
10  lbs.  B.  Sugar,  9, 

5  bu.  Potatoes,  60, 

10  lbs.  Butter,  25, 


.90 
3. 
2.50 


A.  C.  Davis,  126  Tremont  St. 
10  ll)s.  Butter,  25,         2.50 

10    '^    A.  C.  Sugar,        9|^,         .95 
1    ''    Jap.  Tea,  .50 


NOVEMBER 

3,  188-. 

F. 

G.  Ransom,  1 

>8  Spring 

St. 

10  11)S. 

Butter, 

25, 

2.50 

5    '' 

Chicken, 

12, 

.60 

Igal 

.  K.  Oil, 

.15 

6 


IH) 


76 


13 


99 


15 


05 


6 


r9 


40 


95 


25 


ORDER  BOOK. 

NOVEMBER    3,   188- 


Mrs.  J.  H.  Smith,  18  Brown  St. 
5i  lbs.  Chicken,  12,  .66 

10    "    B.  Sugar,  9,  .90 

5    "    Mackerel,  8,  .40 


D.  Lucas,  10  Jones  St. 
6  lbs.  Chicken,  12, 

5  doz.  Eggs,  18, 

2  Brooms,  26, 

2  W.  Pails,  «5, 


.72 
.90 
.50 
.50 


B.  J.  Brown,  38  St.  Paul  St. 
1  Broom,  '^^ 

6  lbs.  Chicken,  12,  .72 

10    ''    Gran.  Sugar,      10^,       1.05 


NOVEMBER   4,   188-. 

W.  L.  Wood,  26  State  St. 

10  lbs.  Gran.  Sugar,      10^, 

5  gals.  K.  Oil,  15, 

5  lbs.  C.  Fish,  8, 

3    "    Crackers,  10, 


1.05 
.75 
.40 
.30 


John  Wilson,  119  Fourth  St. 


4  lbs.  Crackers,  10, 

4  bu.  Potatoes,  60, 
1  bag  Salt,  10  lbs., 

3  lbs.  Raisins,  12, 


.40 
2.40 

.36 


A.  C.  Davis,  126  Tremont  St. 
1  box  Pei)per,  .25 

1  Ex.  Lemon,  -20 

5K.  Oil,  15,  .75 

3  J  lbs.  Chicken,  12,  .42 


D.  Lucas,  10  Jones  St. 
3  lbs.  Crackers,  10, 

2    "    J.  Coffee,  35, 

2  gals.  K.  Oil,  15. 


10  lbs.  G.  Sugar, 


lOi, 


.30 

.70 

.30 

1.05 


NOVEMBER   5.  188-. 
Mrs.  J.  IT.  Smith,  18  Brown  St 


3  lbs.  Crackers, 
1  Lem.  Extract, 

1  box  Pei)per, 

2  gals.  K.  Oil, 

3  lbs.  C.  Fish, 

10    "    A.  C.  Sugar, 


10, 


15, 

8, 
10, 


30 
.20 
.25 
..30 
.24 


B.  J.  Brown,  38  St.  Paul  St. 
5  bu.  Potatoes,  60,         3. 

3  lbs.  J.  C(»ffee,  35,         1.05 

5    "    Butter,  25,         1.25 


F. 

G.  Ransom, 

98 

Spring 

St. 

1  box  Pepi)er, 

.25 

10  lbs. 

G.  Sugar, 

lOi, 

1.05 

2  Brooms, 

25, 

.50 

2  W. 

Pails, 

20, 

.40 

145 


96 


62 


2    02 


50 


3 


36 


62 


2    35 


29 


30 


i      2    20 


-tjjp'i'^i'' ""**'*"''**' 


mmmmmSm 


146 


Nov, 


.  m\ 


^ 


! 


Hi 


THEORETICAL    AND    PRACTICAL    BOOK  KEEPING 

CASH    BOOK. 

NOVEMBER.   188-. 


1 

S(  iident. 

•? 

Mdst'. 

2 

a 

3 

i( 

4 

a 

5 

n 

6 

it 

Nov.     I     7     Balance, 


Mdse. 


IVIdse. 


Student, 


Mdse. 


Mdse. 


} 


Student, 


Investment, 
Cash  sales, 


« 


ft 
*t 

« 


JOURNAL 


NOVEMBER    1,   188- 


To  n.  A.  lirt'wster, 
Invoice  due  in  10  davs. 


To  Geo.  0.  Buell  &  Co. 
Invoice  due  in  30  days. 


To  Afdse. 
Trivate  use. 

5. 

To  Geo.  C.  Bu(>ll  &  Co. 
Invoice  due  in  30  davs. 


To  ir.  A.  Brewster*  Co. 
Invoice  due  in  10  days. 

6. 

To  Mdse. 
Private  use. 


28 
27 
48 
J>2 

o: 

105 


4.5 
00 
110 
32 
25 
05 


2500 


395 


77 


2805 


1623 


77 


75 


1087 


327 


50 


50 


117 


1087 


50 


50 


50 


50 


G3 


9 


18 


80 


117 


50 


50 


63 


9 


18 


80 


Nov. 


1 


3 
4 

5 

>? 

G 


Expense, 


It 


Mdse. 


C( 


Student, 
Mdise. 

Expense, 
%i 

ti 

Student, 
Expense, 

Balance, 


TlLEOliJJrilCAL.    AND    PRACTICAL    BOOK-KEEPING. 

CASH    BOOK. 

NOVEMBER.   188-. 


Iron  Safe, 

Horse,  125;  Harness,  12, 

Wagon, 

P.  Scales,  35;  C.  Scales,  26, 

Oflice  Books, 

Invoice  of  S.  P.  &  Co. 

Vegetables,  Poultry,  etc. 

Private  use. 

Vegetables,  Poultry,  etc. 

Crackers,  etc.,  J.  Howe  &  Son. 

Hay,  Oats,  etc. 

Insurance, 

Horseshoeing, 

Stuart  &  Co.,  Carpenter  AN  ork, 

Private  use, 

J.  Dunn,  10;  R.  H.  King,  12, 


147 


KM) 

137 

(U> 

61 

7 

672 

39 

10 

36 

38 

US 

15 

2 

15 
22 


27 

84 

24 
02 
75 

50 
50 


12 72  j  02 
1623      75 


2S05 


<    4 


MEMORANDA  OF  TRANSACTIONS. 

[not  to  bb  copied.] 

NOVEMBER  1,  188-. 
I  have  commcncod  a  Retail  Grocery  and  Provision  Business  tl.is  day,  in  the  store  ^o.  =i'.>4  Ma.n 
o^      X   1         1  .^^   T    A    T^mmI  for  five  vears,  at  $600.00  per  year. 
'^'^^:lJi^^^^^^  -  sho.„  by  a'  ,ass  book  contunung  a  credit  to  n,y  account  at 

'"\t  t::;r  5-  thf  «r!t  a^Xef  I'^nd  upon  the  desk     .e.oranda  o,  husiness  transact.^ 

"  't:;^i.tcd  hi,,s  for  an  Iron  Safe,  lOn.OO;  Horse,  125.00.  Harness,  12.00;  ^Vagon   «0.00;  Flatfo. 
Scale!  sl'oo;  Counter  Scales,  20.00:  and  Office  Books   7.00;  J'-f-f'^.^'^^jtlcJ  Cit^'.  unountin, 

Au  invoice  of  Groceries,  Wooden  Ware,  etc.,  purchased  of  Smith,  1  "'^'n^'^  ,      ',     V    \r    R  \ 
»    ,9^*0      The  terms  of  purchase  are  6  montlis,  or  5  and  ^  ofE  f.,r  cash.     Paul  hy  check.    (C.  h) 
'"  ^.vo^rofcrrrJriir^rovisions,  Canned  Goods,  etc.,  purOased  of  H.  A.  Brewster  .t  Co..  C  „, 
amountmg  to  1087.50.     Terms,  10  days.     (J.,  page  H6.)  ..... 

■■'  "r  f:i;::::r;e;  :rLnd  on  the  order  Book.    >..  .  «.  Smi.,  is  Brown  St.    in.,  .apan 
Eggs,  @  20c.,  10  II  s.  i^- ^"^'^T'  ^        '  .     ,  ,,      n  Fisi,  (7h  8c.;  2  ll)s.  Java  Coffee,  @  3.>c.;  o  gals. 

5  bu.  Potatoes,  (§  60e.;  5  lbs.  L.  Raisins   @  13c.     B.  J.  «^«^^'  ^«  ^  '(.    ^^  cj^  ^ 

^i:';.L^%'.^r9 »"-"«« s;;,Mi:.vt~.-.  •  -  -» -«• » 

35c.     (0.  B.  and  P.  L.,pf^es  lU  ("id  ^■^■) 

NoTE.-Give  each  account  in  the  Personal  Ledger  a  whole  page. 
Cash  sales,  shown  by  cash  in  drawer,  28.45.     {C.  B.) 


14b 


THEOKFriCAL    AND    PKAOTICAL    BOOKKEEPING. 

NOVEMBER    2.   188-. 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


149 


1  ! 


At  the  close  of  tl.is  (lav's  })nsiness  1  find  tl.e  f(»llo^^•in,^r  memoranda  upon  (he  desk- 

,    ^/^"r"'^**^;f/'»'«^i^^i^'"^S  Wooden  Ware,  etc.,  bought  of  Geo.  C.  Biiell  &  Co.,  at  30  davs,  amountino 
to  327.  .)0.      (./.)  "  *" 

^  1  also  find  uixm  the  Order  H<»ok  the  following:  W.  I.  Wood,  2i\  State  St.,  10  lbs.  Hutter,  (^  25c  • 
o  11,8.  Chickens,  (a)  12c.;  10  lbs.  A.  C.  Sngar,  ot  Uh:  Mrs.  .1.  H.  Smith,  IS  Brown  St.,  5  l.u.  Potatoes' 
(a)  GOc;  3  doz.  Eggs,  @  ISc;  5  lbs.  Butter,  @  25c.  1).  Lucas,  10  Jones  St.,  10  lbs.  B.  Sugar,  @  Oc  • 
o  bu  l>(,tatoes,  (a)  60c.;  10  lbs.  Butter,  @  25e.  A.  C.  Davis,  120  Tremont  St.,  10  lbs.  Butter,  @  25c.; 
10  lbs.  A.  C.  Sugar,  @  D^c;  1  11,.  Jap.  Tea,  50c.  {O.  B.  and  F.  L.) 
Cash  sales  for  the  day,  27. IM).     [C.  B.) 

NOVEMBER   3,   188-. 
At  the  close  of  business  this  day  I  find  the  following  memoranda  upon  the  desk: 
Slip  on  a  spindle  showing  that  1  have  i)urchased  Vegetables,  Poultrv,  Butter,  etc.,  of  a  farmer   by 
check,  to  the  amount  of  39.84.     {C.  B.) 

NoTK.— An  entry  should  be  made  of  this  (runsuetion,  as  omitting  it  would  cause  a  deficiency  in  cash      Only  such 
mercliandise  as  is  paitl  for  out  of  the  drawer  with  the  proceeds  of  current  sales  should  be  onutted. 

The  following  orders  are  found  upon  the  Order  Book:     F.  G.  Ransom,  98  Si)ring  St.,  10  lbs   But- 
ter, @  25c.;  5  lbs.  Chickens,  @  12c.;   1  gal.  K.  Oil,  15c.     Mrs.  J.  H.  Smith,  18  Brown  St.,  5^  lbs 
Chickens,  @  12c.;   10  lbs.  B.  Sugar,  @  9e.;  5  lbs.  Mackerel,  @  8c.     I).  Lucas,  10  Jones  St.,  6  lbs. 
Chickens,  @  12c.;   5  doz.  Eggs,  @  18c.;   2  Brooms,  @  25c.;   2  W.  Pails,  @  25c.     B.  J.  Brown,  38 
St.  Paul  St.,  1  Broom,  25c.;  G  lbs.  Chickens,  @  12c.;  10  lbs.  G.  Sugar,  @  lO^c.     {0.  B.  and  P.  L.) 

The  cash  sales  for  the  day  have  been  48.90,  which  includes  amounts  paid  in  on  account  by  Mrs. 
J.  II.  Smith,  5.00;  John  Wilson,  to  balance  %  2.76;  and  A.  C.  Davis,  5.00.     (C.  B.  and  P.  L.) 

Note.— Foot  Wilson's  account  and  rule  it  up.     See  Mrs.  J.  H.  Smith's  account,  pas,'e  144. 

I  have  approi)riated  10.00  cash,  and  goods  from  the  store  amounting  to  6.50,  to  my  private  use. 
(C.  B.  and  J.) 

NOVEMBER   4,   188-. 

The  following  memoranda  was  found  ui)()n  the  desk  at  the  close  of  this  dav:  A  slip  showing  that 
I  have  bought  Vegetables,  Poultry,  liutter,  etc.,  of  farmers,  bv  checks,  amountiilg  to  30.24.  An  invoice 
of  Crackers  from  J.  Howe  &  Son,  38.92;  paid  by  check.  A  bill  of  28.75  for  ilav,  Oats  and  Straw, 
for  horse;  i)aid  by  check.     {C.  B.) 

I  find  the  following  upon  the^Order  Book:     W.  L.  Wood,  26  State  St.,  10  lbs.  G.  Sugar,  @  lO^c; 


5  gals.  K.  Oil,  @  15c.;  5  lbs.  C.  Fish,  @  8c.;  3  lbs.  Crackers,  @  lOc.  John  Wilson,  119  Fourth  St., 
4  ll)s.  Crackers,  @  lOc;  4  bu.  Potatoes,  @  60c.;  1  bag  Salt,  10  lbs.,  20c.;  3  lbs.  Kaisins,  @  12c. 
A.  0.  Davis,  126  Tremont  St.,  1  box  Pepper,  25c.;  1  Lemon  Ext.,  20c.;  5  gals.  K.  Oil,  @  15c.;  3^ 
lbs.  Chicken,  @  12c.  D.  Lucas,  10  Jones  St.,  3  lbs.  Crackers,  @  10c. ;  2  lbs.  J.  Coffee,  @  35c.;  2  gals. 
K.  Oil,  @  15c.;  10  lbs.  G.  Sugar,  @  lO^c.     (O.  B.  and  P.  L.) 

Received  i)ayments  from  the  following  customers  on  «/f,  shown  by  slips  on  a  spindle:  D.  Lucas, 
10.00;  F.  G.  Ransom,  in  full,  8.40  (rule  up  his  account);  A.  C.  Davis,  6. 00. 

Cash  sales  for  the  day,  07.92,  which,  added  to  payments  on  %  make  the  entire  credit  to  Mdse. 
for  the  day,  92.32.     (C.  B.  and  P.  L.) 

NOVEMBER    5,    188- 

At  the  close  of  this  day  I  find  the  following  memoranda  on  the  desk:  Invoice  of  Groceries,  from 
Geo.  C.  Biiell  &  Co.,  117.50;  terms,  30  days.  J.)  Invoice  of  (iroceries,  from  II.  A.  Brewster  &  (^o., 
63.18;  terms,  10  days.  {J.)  A  Policy  of  Insurance  on  stock  and  fixtures  of  1500.00;  Premium,  1^, 
l)aid  by  check.  [C.  B.)     Receipted  bill  for  Shoeing  Horse,  2.50.  {(\  B.) 

The  following  is  found  on  the  Order  Book:  Mrs.  J.  II.  Smith,  18  Brown  St.,  3  lbs.  Crackers, 
@  10c. ;  1  Lem.  Ext.,  20c.;  1  pkg.  Pei)i)er,  25c.;  2  gals.  K.  Oil,  (a^  15c.;  3  lbs.  C.  Fish,  @  8c.;  10  lbs. 
A.  C.  Sugar,  @  10c.  B.  J.  Br<.wn,  38  St.  Paul  St.,  5  bu.  Potatoes,  @  COe. ;  3  lbs.  J.  Coffee,  m  35c.; 
5  lbs.  Butter,  @  25c.     F.  G.   Ransom,  98  Spring  St.,   1   pkg.  Pepper,  25c.;   10  lbs.  Grau.  Sugar,  @ 


lOic;  2  Brooms,  @  25c.;  2  W.  Pails,  @  20c.  P.  J.  Warner,  19  Wood  St  1  lb  ^ip.  Tea  fk-.;  10 
lbs    G.  Sugar,  @  lO^c;  1  gal.  K.  Oil,  15c.;  5  lbs.  Crackers,  @  10c. ;  5  bu.  Potatoes,  @  0  'c.     {O. 

'^'  The^'f<ilowing  customers  paid  on  «(.:  Mrs.  J.  XL  Smith,  5.00,  and  W.  L.  Wood,  U'.OO  Cash 
sales,  per  drawer,  77.25,  with  payments  on  «fc  added  make  entire  credit  to  Mdse.  92.2o.  {( .  B.  and 
P.  L.) 

NOVEMBER  6,   188-. 

The  following  memoranda  is  found  upon  the  desk  at  the  close  of  this  day's  business:  Receipted 
bill  .)f  Stuart  &  Co.,  for  carpenter  work  on  counters  and  bins,  of  20.50;  paid  by  cheek.    {(    B) 

Slips  in  the  cash  drawer  showing  that  I  have  appropriated  15.00  cash  and  9.80  in  goods  from  the 
store,  and  that  I  have  paid  J.  Dunn  and  R.  H.  King,  clerks,  10.00  and  12.00  respectively,  for  s^daries 

for  week.     {C.  B.  and  J.) 

Cash  sales,  shown  by  cash  and  slips  in  drawer,  105.95.  ..-l  o      .  i       o^      i 

I  find  the  following  unpaid  orders  upon  the  Order  Book :  John  Wilson,  119  4th  St. ,  1  box  Starch, 
6  lbs.,  40c.;  2  cans  Ovsters,  @  30c.;  1  bbl.  Apples,  2.00;  1  cake  Chocolate,  35c.  D  I^^^^^s  10  Jones 
St.,  i  lb.  Pepper,  @  30c.,  15c.;  1  pk.  Sweet  Potatoes,  50c.;  5^  lbs.  C.  Fish,  («^  8c.  1  Lem.  ^;^t  2(»c.: 
1  10:ib.  bag  Salt,  20c.  L.  J.  Sevmour,  19  Beach  St.,  3  doz.  Eggs,  @  18c.;  2  cans  Oysters,  @  SCk-.;  4 
lbs.  Crackers,  @  10c. ;  2  bu.  Potatoes,  @  60c.  F.  Woodbury,  10  Locust  St  2  Brooms  (??^  2oc.;  3 
bu.  Potatoes,  @  60c.;  5i  lbs.  Chicken,  @  12c.;  4  lbs.  Crackers,  @  10c. ;  1  bbl.  Apples,  2.00.     {(K  />. 

and  P.  L. ) 

NOTE.-YOU  will  now  close  the  Cash  Book,  post  andtake  a  Trial  Balance.     Give  ea<h  account  oncfourth  of  a  ^y^ 
space.     Balance  of  cash,  as  shown  by  ('jush  Book,  1623.75. 

NOVEMBER   8,   188-. 
The  following  memoranda  appear  upon  the  desk  at  the  close  of  this  day:    Receipted  bill  f<.r  a  ton 
of  Coal  for  use  of  store,  5.75;  paid  by  cheek.     Bill  of  W.  Moran  for  Stove,  Coal  Hod,  ^^-}^-^2 
%  41.50.     Invoice  of  goods  bought  of  II.  A.  Brewster  &  C.,.,  at  10  days,  amounting  to  21  ..oO.     llor^ 

bought  for  use  of  store,  by  check,  85.00.  .     ,    c   iw  .     . 

The  folh.wing  appear  upon  the  Order  Book:  Mrs.  J.  II.  Smith,  18  Brown  St.,  1  pk.  N.  1  otatoe^. 
50c.;  1  10-lb.  bag  Salt,  20c.;  1  W.  Tub,  80c.;  1  bbl.  Apples,  2.00.  W.  L.  Wo<m1,  26  State  St.  1  box 
Soap,  4.15;  1  pk.  S.  Potatoes,  50c.;  3  d<.z.  Eggs,  @  20e.  B.  J.  Brown  38  St.  P.u.  St.,  o  Ibs^L. 
Raisins,  @  13c. ;  1  bbl.  Apples,  2.00;  1  lb.  Jap.  Tea,  50c. ;  1  Umi.  Ext,  20c.  A.  C .  Davis,  12.,  Tre- 
mont St.,  1  W.  Tub,  80e.;  10  lbs.  A.  C.  Sugar,  @  10c.  ,  „    .  .,      t  i      wi    .     r  ,„,. 

The  following  amounts  were  paid  on  o/c.  Mrs.  J.  II.  Smith,  m  full,  4...4;  J.»hn  A\  ilson.  .».0o. 
B.  J.  Brown,  10.00.     Cash  sales,  including  payments  on  %  93.82. 

NOVEMBER    9.   188- 
Paid  for  new  Harness  by  check,  24.00.     Paid  cash  for  building  Coal  Bin,  2.00,  and  f<.r  Luml>er  for 

same,  1.75.  ,,      t^  n  ^  n       i   i       o     . 

Order  Book:  D.  Lucas,  10  Jones  St.,  3  doz.  Eggs,  @  20c.;  10  lbs.  B  Sugar,  @  9c. ;  1  b<,x  Soap. 
4.15;  2  lbs.  L.  Raisins,  @  12c.  P.  J.  Warner,  19  Wood  St.,  1  pk.  S.  Potatoes  50c.;  1  ^^ .  Tub  8o<.. ; 
10  lbs.  B  Sugar.  @  9e. ;  6  lbs.  Chickens,  @  12c.;  1  bbl.  Apples,  2.00.  L.  J.  ^^ey.nour  19  ^^^^f^^^- 
1  bbl  X  C  Flour,  8.75;  1  pk.  S.  Potatoes,  50c.;  1  box  Soap,  4.15.  F.  A\  oodbury,  10  Lm-ust  St..  3 
lbs  L  Raisins,  @  13c.;  1  W.  Tub.,  80e.;  1  gal.  N.  O.  Molasses,  45c.;  10  lbs.  (Jran.  Sugar,  @  loU-. 
Mrs.  J.  H.  Smith,  IS  Brown  St.,  10  lbs.  G.  Sugar,  @  10k'.;  4  lbs.  Chicken,  @  12c.;  2  cans  Oysters, 

@  30e. 

Cash  Sales,  93.18. 

NOVEMBER,   10,  188-. 

Drew  15.00  cash,  for  private  use,  and  api)ropriated  14.60  in  goods, 

Order  Book:  F.  G.  Ransom,  98  Spring  St.,  1  box  Soap,  4.15;  2  lbs.  Coffee.  @  32c.;  1  \\ .  lub, 
80c  •  P  J  Warner,  19  Wood  St.,  1  Lem.  Ext.,  20c.;  10  lbs.  A.  C.  Sugar.  @  lOc;  1  gal.  N.  O.  Molasses. 
4oc'-  1  bbl.  N.  P.  Flour,  8.75.  B.  J.  Brown,  28  St.  Paul  St.,  1  bbl.  N.  P.  Flour,  8.75;  2  ^^ .  Pails. 
@  20;  1  Basket,  18c.  L.  J.  Seymour,  19  Beach  St.,  2  cans  Oysters,  @  30c.;  1  Lem.  Ext.,  20c.;  4^ 
:os.  Chickens,  @  12e.;  10  lbs.  G.  Sugar,  @  lO^c.  ^ 

Payments  on  account,  L.  J.  Seymour.  15.00;  F.  Woodbury,  m  full,  8.0o;  D.Lucas,  ..00;  1.  J. 
Warner,  20.00.     Cash  sales,  including  ])ayments  on  account,  136.27. 


\l 


150 


THEORETICAL    AND    PRACTICAL    BOOK  KEEPtNO. 


1  il 


i     : 


II  a 


t 


? 


!: 


1  i  k\ 


II 


|. 


i 


i  II 


V'   \ 


NOVEMBER  11.  188-. 
I  find  upon  the  desk  the  following:     A  receipted  .tutenient  from  II.  A.  Brewster  &  Co.,  of  Invoice 
ot  1st  iiist.,  paid  by  clit'ck,  1087.50. 

W   V^r(^"lt     r  )^''""""">'  ^«   Locust  St..  1  1,1,1.  N.  p.  Fl„„r,  8.7,5;  1  ,,k.  S.  Potatoea,  50c.,  2 

Tul,;   1  «f      '•> ,  '■  :     P'"'"""'  '°  """''  *"*••  '"  ""•  "•  ""»"■•  @  -'i^-  3  do..  Eggs.  @  2(lc.;  2   V. 
lute,  @  «Uc.;  1  I'bL  A,,,,!.s.  2.00.     Mrs.  J.  II.  Su.ith,  18  Broun  Sr..  1  bbl.  N.  P.  pLur  8.75;  2  Ihs. 

P  pf  r's®  -  ■  ^-  *""''  ''  ^'""'■'  •''••  '  "'"•  •'■  «""'^^«'  ®  ''"■■'  1  "'■  •'"!'•  Tea,  50;.;  1  ibl.  N. 

-I «  JTiour,  o.  I  o, 

on  ac!r.'t™  ur23."'""""'  "'  "''  "'"*"'  '"'""'^  '''   ^''^  '^'"'"'"-  '•*'°-     ^"''^''  ^'^^-  '"^"'"''"S  I'"™'-"'' 

NOVEMBER,    12,   188- 
Pa>d  easl,  for  graining  counters  and  bins,  11.75.     Bougbt  Fruit.  Poultry,  &e.,  by  check,  32.15. 

rone  ,       •  r  :  n""'  '"   ^^"'"'  ^*-  1  ''•''•  ''''l"'^-''  ^•''"=  1  •'"^ket  Peaches,  1.50;  1„  lbs. 

Conconl  Crapes,  @  4c.;  10  lbs.  (h-an.  Sugar,  @  lOjc.     D.  Lucus,  10  Jones  St..  10  bn.  Potatoes.  @ 

n9'4th    sl'     i  I   :  T\     T'    *  '■""'  ^•'''''■''  ®  ^"•'•'   **  ""•  C''"«keens,  @  12c.     John  Wilson, 
t!         .o^t;:  ^  '"'f '"  ^""'"'''  ®  ^•^"'  '"  "*  ^-  ^^''g'"-'  @  9^-  1  I'"'-  S-  Potatoes,  00c.     A.  C 
Days    126  'l>em.,„t  St.,  5  lbs.  Chickens,  @  12c.;  2  cans  Oysters,  @  30e.;  2  lbs.  Crackers,  @  l-.-c;  2 
baskets  Peaches,  @  1.20;  2  bu.  Potatoes,  @  COc.  ,-j.      i.,« 

Payment  on  account,  Mrs.  J.  H.  Smith.  lO.Oo.     Cash  Sales,  including  i,ayment,  1G8.83 

NOVEMBER  13,   188- 
Paid  cash  for  Horseshoeing,  3.50;  clerks'  sahiries  fc.r  week,  10.00  and  12.00;  Letter  Heads  and 
ilinvelopcs,  2.00;  and  Postage,  ;30c. 

111     ;  '  f  '  ^"  ^'"''''"'  '^^  •'''"•'""  ^^-'  ^  ^^''-  ^^^^^^r<A.  @  Ck.. ;  2  cans  Oysters,  @  30c  • 

1  bhl.  Apples,  2.00;  ,  lbs.  L.  Kaisins,  @  Kic.  John  Mead,  103  Smith  St.,  1  bbl.  N.  P.  Fhmr  8  75.' 
4  bu.  lotHtoes  @  00c. ;  1  can  Oysters,  30c.;  2  lbs.  Java  Coffee,  @  30c.;  1  lb.  Japan  Tea,  GOc:  1  box- 
Soap,  4.  lo;  1  bbl.  Ajiples,  2.00.  *  '  »       ^"-^ 

^;'^,";;';;*'^  ;;"  ;^^'^'7'"^!  a-  t^-  I^^^^is,  lO.OO;  W.  L.  wood,  lO.OO;  John  Mead,  15.00;  K  J.  Brown, 
in  lull,  4.j,K     Lash  sales,  including  ])ayments,  l(;3.11l. 

Having  now  conducted  tiie  busine.is  two  weeks,  1  have  detern.i.u.l  to  close  the  accounts  showin- 
gams  and  losses,  and  ascertain  tlie  result  of  the  venture.  * 

RESOURCE  INVENTORIES. 

NoTK -Since  the  ^ale.s  of  mm],a„,li.<o  on  arc-ount  are  not  cmlitcd  to  Mdscv  aorount  when  n.a.l...  il  i.s  a.mureut 
that  tl,(.  balance  ot  all  the  accounts  in  the  Pers(,nal  Ledger  should  ho  inciudc.l  in  the  Inventory 

MERCHANDISE-in  Store,. j^^^,  y. 

Personal  Ledger:— F.  Woodbury,  9.05;  L.  J.  Seymour,  8.G8; 
Mrs.  J.  H.  Smith,  1.52;  W.  L.  Wood,  6.G5;  John  Wilson,  5.r.0;'A.  ('.  Davis, 
7.25;  F.  G.  Ransom,  G.17;  D.  Lucas,  10.09;  P.  J.  Warner,  5.57;  Joiiii  Mead, 
3.92, 


C5  IG 


170G  01 


25  00 


EXPENSE-2  Horses,  310.00;    1  AYag(m,  6G.00;  P.  Scales,  35.00;  C.  Scales,  20.00;  2  Har- 
nesses, 30.00;  Hay,  Oats,  &c.,  20. 00,.... ,... 4^.  ^^^ 

LIABILITY  INVENTORY. 

EXPENSE— One-lialf  Month's  Rent  unpaid,  to  be  debited  to  Kxpense, 

Net  Gain,  100.30;  Balance  of  Cash,  11-^8.57. 

QUESTIONS  FOR  REVIEW. 

•^'''f^  ^f.\~^^l'  ''Y  ''■"'^  "^* ''"''"''''  •'  ^'^'^  •"•••»'>^'^^"»t"»t  of  ],ooks  adai)ted?    'What  books  are 
.In  purchased       MV  len  are  the  entries  in  the  Order    Bo<,k   posted?    'Describe  the   Cash   Book. 

T      '  i!^''  "\  '""^^""'     '  ""^^'  "^^^•>'  ^^''  '^'""'"^^^  '*^'  dispense.1  with?    »  Describe  the  Personal 

Ledger.        How  are  sales  on  account  regarded?     "  Why  is  the  ordinary  Journal  ruling  p.vferable  for 
a  1  ersonal  Ledger.^     -From  what  b<»ok  will  statemc-nts  of  customers'  accounts  be  made?    "  How  is  the 
Le<lger  used?     »  How  are  the  accounts  in  tlie  Personal  L  'dger  treated  in  closing  the  Ledaer*''     »  Why 
.8  no  Bank  account  in  the  Ledger  necessary?     ■«  What  will  the  Cash  Book  exhibit  if  no  Bank  account 
IS  kept.--       How  are  deposits  and  checks  entered? 


1 


MANUFACTURING. 


The  following  arrangement  of  books  is  similar  in  all  essential  particulars  to  that  of  one  of  the 
most  extensive  furniture  manufacturing  tirms  in  America,  and  was  selected  on  account  of  its  exceeding 

simplicity  and  completeness.  •     •     1  1      1  1  „ 

^The  books  required  are  a  Sales  Book,  Cash  Book,  Journal  and  Ledger  as  principal  books,  and  a 

Hands  Register.and  Bill  Book  as  auxiliaries. 

In  an  extensive  business  a  book  called  a  Tickler  is  sometimes  kept  to  record  the  maturity  of  bi  Is 
inirchased  on  time  on  acccmnt.  This  book,  as  ordinarily  used,  contains  columns  for  the  date  of  the 
invoice  the  t)urchaser's  name,  his  address,  the  terms,  the  day  of  maturity,  the  amount  and  remarks. 
A  numi)er  of  pages  are  set  aside  for  each  month  of  the  year,  and  all  bills  falling  due  in  any  month  are 
entered  in  the  space  provided  for  that  particular  month.  ,      ,  ,  , 

^  The  Sales  Book  contains  all  sales  on  account,  giving  the  articles,  terms  of  sale  and  amounts. 
» The  purchasers  are  debited  direct  from  the  Sales  Book  with  the  amount  of  each  sale,  and  Mdse. 
account  is  credited  with  the  daily,  weekly  or  monthly  footing.  ,1     w, 

*  The  Cash  Book  does  not  vary  from  the  ordinary  form,  excepting  that  the  debit  column  on  the  left 
hand  page  is  devoted  to  the  cash  sales  of  merchandise.  «  All  -  Regular  "  bills  described  m  the  Mem- 
omnda,  liave  four  months  to  run;  but  if  the  purchaser  chooses  to  settle  within  thirty  days  he  is 
allowed  a  discount.  ^Instead  of  crediting  the  purchaser's  account  in  the  Cash  Book  with  the  net 
amount  of  cash  received,  and  in  the  Journal  with  the  discount,  the  purchaser  is  credited  in  the  Cash 
Book  for  the  entire  amount  of  the  settlement  and  Discount  account  is  debited  for  the  discount,  on  the 
<,ther  side  of  the  Cash  Book.  See  Cash  Book,  pages  152-3.  « Mdse.  account  is  credited  with  the 
footin-  of  the  Mdse.  column  in  the  Cash  Book,  whenever  the  Cash  Book  is  balanced.  The  cash 
slH.ild  be  proved  every  day  in  pencil,  but  the  Cash  Book  need  not  be  balanced  oftener  than  once  each 

week 

>'«  The  Journal  contains  only  entries  that  cinnot  jiroperly  be  made  in  the  other  books. 

"  The  Hands  Register  contains  the  weekly  earnings  ot,  and  payments  to,  all  employees.  A  column 
,s  ruled  at  the  extreme  left  of  the  left  hand  page  for  the  names  of  the  hands,  and  the  remamder  of  the 
page  is  divided  into  as  n.auy  double  money  eolnmns.  Dr.  and  Cr..  as  the  s  /.e  of  the  book  wiU  ,K.rm.t, 
similar  to  the  Continued  Trial  Balance.  The  employees' time  is  "  made  up'  from  the  l-oremans 
time-book,  and  the  amount  due  eacli  is  entered  in  the  first  vacant  Cr.  Column  opposite  his  name. 
When  thev  have  been  paid,  the  amount  each  has  received  is  placed  in  the  first  Dr.  column  opposite  his 
name,  thus  balancing  the  column.     The  footing  of  the  H.  R.  is  entered  to  Labor  account  on  the  right 

hand  side  of  the  Cash  Book.  ,  .      n  •     .,  .  u     i    *f  .».  -t 

In  this  set  the  entire  investment  is  credited  to  Stock,  as  explained  in  the  note  at  .he  bottom  .1 

page  44. 

x51 


1*» 


ill 


r  1 


4 


t 


152 


THEORE-riOAL    AND    PRACTICAL    BOOK  KEEPING. 

CASH   BOOK. 

DECEMBER.   188-. 


DATE. 


Dec. 


Folio. 


2 


50 


51 


Stock, 


('.  A.  (Jmves, 


Cash  ill  Safe, 
liill  to  J.  Smith,  01iani])or  Suit, 
"      Mi-.s.  Wood,  Pat.  Kocker, 
"      W.  Hrowii,  Parlor  Suit, 

liill  to  J3.  Jones,  Pat.  Kocker, 

Wal't  H.  Hack, 
Bunch  of  Cane, 


JiD8B. 


3(i 

144 

20  a 

22 

28 

80 
tsa     8  0 


BUNDKIE8. 


211    14 


143fi 


85 


JOURNAL. 

DECEMBER    1,   188-. 


Polio 


Kesources  of  C.  J.  Huntington  &  Co. 

To  Stock, 
Manufactory,  18000;  Warehouse,  24000. 


Sundries, 
Real  Estate, 


Merchandise, 


\it 


Machinery  and  Tools, 
Ottice  Fixtures, 
First  National  Hank, 
iiills  Receivable, 


Manufactured,  47,500;  Lumber,  28,000- 
Hardware,  1400;  Fabrics,  etc.,  1700: 
Vaniishes,  Oils,  etc.,  .350. 

Safe,  Desks,  etc. 
On  deposit, 


Interest, 
C.  A.  (i raves, 
E.  S.  Smith, 
E.  S.  Smith, 


(t 


J.  L.  Brown's  note,with  int.  per  B.  B  ,  8(;5. 
S.  11.  Parker's  "  "■  '<  j^^q 

Vu'^'l'^^'^V     "      "    1744:50 

J.  ii.  Andrews   **  "  «         428.15 

On  almve  notes  to  date, 
Bill  of  Nov.  3,  R 

"     5, 
"    5,  Net. 

NOTK.-YOU  will  complete  thi.s  entry  and  continue  the  Jounml  ..ntries  as  illnstruted  alwle 


42000 
78950 


0000 

850 

448(1 

3«J87 


148137  12 


84 
C5 


30 

1430 

1153 

217 


70 
85 
K5 
43 


HANDS  REGISTER. 


Neir, 

Brown, 

Wilson,  J. 

Wilson,  I). 

Mever, 
Johnson, 

Lyn^Mii, 

Mosier, 

'I'hayer, 

Pease, 

Bartlett,  Foreman, 

Hyatt,  Book-keeper, 

Morey,  Ass't  Hook-keej>er, 

Hackett,  Salesman, 

Pomeroy, 


THEORETICAL    AND    PRACTICAL    BOOKKEEPING. 

CASH   BOOK. 

DECEMBER,   188-. 


DATE. 


Dec. 


2 


Folio. 


53 
54 


Discount, 
Mdse. 


C.  A.  Graves,  5^  on  1436.85, 
3500  ft.  Wal't,  (a)  70, 


Note.— Continue  the  entries  in  the  Cash  Book  as  here  illustrated. 


SALES   BOOK. 

DECEMBER    1,  188- 


Folio. 


Holdridge  &  Gray,  Medina. 
1  No.  33  Wal't  Bed, 

1  No.  33      "     Wood  Top  Dresser, 

2  "     Towel  Backs, 

2  No.  80  Chairs, 
12  No.  40^     '' 
12  No.  57       " 

John  IT.  King,  City. 

G  No.  3G  Chairs,  Maple, 

Geo.  C.  Lyon,  Fair  Haven. 

3  Best  S.  B.  Beds, 
3  High  H.  D.  Cott, 

3  Low  do. 

1  Imp.  Congress  Chair, 
24  No.  72  Light  Chair, 
12  No.  72  Dark 

4  No.  01 


R. 

<< 

i( 
Net. 

a 


Net. 


Net. 

a 
tt 

it 
(( 
a 


LEDGER. 

C.  A.  GRAVES,   Brockport. 


188- 

Nov. 

3 

J. 

Dec. 

3 

S.  B. 

5? 

k  k 

5 

<< 

R. 

Net. 


188- 

143G 

85 

Dec. 

2 

54 

50 

3 

08 

19 

35 

C.  B.,  5:^  otf, 


E.   S.   SMITH,   North  Wilson. 


188- 
Nov. 


5 

5 


188- 

B. 

1153 

85 

Dec. 

4 

Net. 

217 

43 

C.  B.,  5^olT, 


WARREN  &.  FRANCIS,  Jamestown 


SUNDRIES. 


71 
245 


84 


10 

17 

1 

15 
9 


50 

Gs! 
92  1 


6 


30 


05 

1^ 

20 

2 

85 

11 

5 

50 

1 

92 

188- 
Nov. 
Dec. 


7  I  J. 


3 


5 


S.  B. 


Net. 
R. 

Net. 

R. 

Net, 


188- 

210 

40 

Dec. 

« 

12 

50 

13 

50 

48 

34 

C.  B. 


153 


TOTAlu 


29 
24 


15 
92 


10  80 


42  42 


1436 


85 


1371 


28 


210 


40 


tmmmm 


154 


THEORETICAL    AXD    PRACTICAL    HooK-KEEFINO. 


THEORETICAL    AND    PRACTICAL    BOOK-KEKPINO 


155 


hi 


DECEMBER  1.  188-. 
Resources  of  0.  J.  Iluntington  &  Co.,  Furniture  Manufacturers: 

Real  Estate:     Manufactory,  18000.00;  Warehouse,  24000.00.     Total,  42000.00.     (J.) 
Merchandise:     Manufactured,  47500.00;  Lumber,  28000.00;    Hardware,   1400  00-    Fabrics  &c 

1700, Of);  Varnishes,  Oil  &c.,  850.00.     Total,  78950.00.     (J.) 

Machinery  an.l  Tools,  0000.00.  (/.)     Office  Fixtures,  Safe,  Desks,  &c.,  850.00.  (,/.)    First  National 

Bank,  on  deposit,  448f5.84.   (/.    T/h'  Batik  account  is  here  kepi  in  the  Ledger,  but  may  be  kept  in  the 

Chirk  Book  if  preferred.)     Cjj^^Ii  iu  «afe,  211.14.   {(\  B.) 

Bills  Receivable:  Note  of  J.  L.  Brown,  Tonawanda,  at  3  mos.  from  Sept.  1st.,  with  interest, 
865.00.  Note  of  S.  H.  Parker,  (Jreat  liend,  at  3  mos.  from  Sept.  6th,  with  interest,  950.00.  Note 
of  D.  M.  Willard,  Grand  Haven,  at  2  mos.  from  Oct.  19th,  with  interest,  1744.50.  Ni»te  of  J. 
B.  Andrews,  Salem,  at  3  mos.  from  Nov.  15th,  with  interest,  428.15.  Total,  3987.65.  (J.  and  B,  B  ') 
Interest  accrued  on  above  notes,  39.79.   (J.) 

Personal  Accounts  {See  Note  below.):  C.  A.  Graves,  Brockport,  Mdse.  bou-ht  on  Re-ular 
terms,  Nov.  3,  1436.85.  E.  S.  Smith,  North  Wilson,  Mdse.  bought  Nov.  5;  Regular,  1153.85; 
Net,  217.43.  W^arren  &  Francis,  Jamestown,  Mdse.  bought  Nov.  7;  Net,  216.40.  John  If  King' 
City,  Mdse.  bought  Nov.  10;  R.,  184.30;  Net,  195.10.  Covert  Bros.,  Oxford,  Mdse.  bought  Nov.  l\ 
R.,  1423.00.  Geo.  C.  Lyon,  Fair  Haven,  Mdse.  Ix.uglit  Nov.  16;  R.,  83.18;  Net,  41.12.  Holdrid«re  & 
Gray,  Medina,  Mdse.  bought  Nov.  19;  R.,  234.50;  Net,  1117.95.  W.  J.  Thompson,  Rarclav  M^llse 
bought  Nov.  21;  R.,  1143.25;  Net  73.11.  Daniel  Paine.  Bridgeport,  Mdse.  bought  Nov.  23;  R.',  118.45, 
Net,  61.17.     J.  H.  Arnold,  Geneva,  Mdse.  bought  Nov.  25;  Net,  1123.18.     (,/.) 

NOTE.-A11  goods  are  sold  for  Cash,  Net  Cash,  or  on  "  Regular"  Terms.     When  sold  for  casli  no  entry  is  made 
excepting  in  the  Cash  Book,  and  that  at  the  close  of  the  day.     If  thought  best,  such  sales  mav  Ih'  described      See  C 
B.,  page  152.     Such  cash  receipts  should  agree  with  the  Salesman's  memoranda.     When  sold  for  Net  Cash   the  tckxIs 
are  entered  in  the  Sales  Book  with  the  word  "Net"  after  each  item,  and  the  aggregate  is  posted  to  the  debit  of  the' pur- 
chaser's account  in  the  Ledger.      >[dse.  account  should  be   credited  with   the  daily,    weekly  or    monthly  footin-  of 
the  bales  Book.     When  sold  for  "  Net  Cash "  it  is  understoo.l  the  bill   is  to  be  paid  within  :^0  davs      The  frins^re 
indicated  by  'Net "  in  the  Sales  B(X)k.     At  the  expiration  of  the  time  the  bill  has  to  run  it  will  1k'  subiect  to  drift  at 
sight.     When  gocxls  are  sold  on  •'  Regular  terms."  they  are  entered  in  the  Sales  Book  and  post.-d  precisely  as  when  sold 
for  "Net  Cash,"  excepting  that  the  initial  letter  "R"  is  written  after  c-ach  item.     Bills  sold  on  "  Regular "  terms  have 
four  months  to  run.  and  if  paid  within  30  days  are  subject  to  a  <lise<,unt  of  5  per  c.-nt.     If  allowe,!  to  run  l)eyond  the  four 
months  they  are  subject  to  draft  at  sight.     The  terms  on  whi.h  bills  are  .sold  should  be  indicated  in  the  Led-er  as  well 
as  in  the  Sales  Book.     See  accounts  given  on  page  153,  for  illustration.  " 

Sold  Holdridge  &  Gray,  Medina,  1  No.  33  Wal't  Bed,  10.50;  1  No.  33  Wal't  Wood  Top  Dresser, 
17.00;  1  No.  2  Wal't  Towel  Rack,  1.65,  Regiihir.  2  No.  80  Chairs,  92c.;  12  No.  49i  Chairs,  15. 00- 
12  No.  57  Ch.,  9.00,  Net.     {See  Sales  Book,  paije  153.)  ' 

John  H.  King,  City,  6  No.  36  Maple  Chairs,  10.80,  Net.  {S.  B.) 

Geo.  C.  Lyon,  Fair  Haven,  3  Best  Side-board  Beds,  6.30;  3  High  H.  D.  Cots,  7.65;  3  Low 
do.,  7.20;  1  Imp.  Cong.  Ch.,  2.85;  24  No.  72  Light  Ch.,  11.00;  12  No.  72  Dark  Cli.,  5.50;  4  No  61 
Ch.,  1.92,  Net.     {S.  B.) 

Cash  sales,  J.  Smith,  C.  Suit,  36.00.  Mrs.  Wood,  Pat.  Rocker,  22.00.  W.  Brown,  Parlor  Suit. 
144.     {C,  B.,  see  page  152.) 

DECEMBER  2,   188-. 

Sold  Daniel  Paine,  Bridgeport,  6  No.  25  Ch.,  7.20;  12  No.  72  Ch.  Sing.  Round  Light,  5.25- 
6  No.  57  Ch.,  4.50,  Net.     {S  B.) 

Covert  Bros.,  Oxford,  1  No.  33  Wal't  Wood  Top  Suit,  34.75;  1  Tete  in  Jute,  22.00;  1  Ford 
Rocker,  11.00,  Regular.     1  Arm  Chair,  5.00,  Net.     {S.  B.) 

J.  H.  Arnold,  Geneva,  2  No.  4  Soft  Wood  Beds,  6.50;  2  No.  25^  Ch.,  8.00;  2  No.  24  Ash  and 
Wal't  Beds,  9.00;  18  No.  57  Chairs  in  White  (nntinished),  27.00;  3  No.  33  Ash  and  Wal't  Beds,  18.00; 
4  No.  309  Ch.,  4.00,  Net.     {S.  B.) 

Received  check  from  C.  A.  Graves  for  the  amount  of  his  bill  of  Nov.  3,  1436.85,  less  the  regular 
discount,  5  ^,     (C.  B.) 

Bought,  for  cash,  3500  ft.  Wal't  Lumber,  @  70.00  per  M.     {C  B.) 

Cash  Sales:  B.  Jones,  1  Pat.  Rocker,  22.00.  1  W-il't  Hat  Rack,  28.00;  B.incli  of  Cane,  80e.     {C.  B.) 


DECEMBER  3,   188-. 

Sold  C.  A.  Graves,  Brockport,  2  No.  42  Asli  Beds,  18.00;  2  No.  42  Ash  Dressers,  31.00;  1  No.  42 
Ash  W.  Stand,  5.50,  Regular;  aiul  2  No.  83  Ch.,  3.08,  Net.     {S.  B.) 

Sold  W.  J.  Thompson,  Barclay,  6  No.  6  Maple  Cli.  iu  the  White,  10.80;  4  No.  38  do..  1.80,  Net. 

{S.  B.) 

Sold  Warren  &  Francis,  Jamestown,  6  Lounges,  White,  7.50;  4  14  X  24  Glasses,  5.00,  Regular. 

24  No.  57  Ch.,  13.50,  Net.     (,S'.  B.) 

Holdridge  &  Gray.  Medina,  Repairing  Bed  and  Bureau,  8.00;  1  Hair  Soft  Mattress,  4.50,  Regular. 

[S.  B.) 

Cash  sales:  Mrs.  W.  Price,  Ash  Dining  Table  and  6  No.  33  Ch.,  26.00;  1  Wal't  Washstand,  4.00. 

[C.  B.) 

DECEMBER  4.  188-. 

Sold  John  H.  King,  City,  24  No.  87  Ch.,  13.00;  36  No.  89  Ch.  Dark,  19.50;  12  No.  89  Light, 
18.00,  Net.     {S.  B.) 

Sold  Geo.  V.  Lyon,  Fairhaven,  4  Lounges,  White,  5.00;  1  Nc.  42  Ash  and  Wal't  Suit,  21.25, 
Regular.     2  No.  42  Ch.,  Light,  4.(8,  Net.     {S.  B.) 

J.  L.  Brown  i)aid  his  note  of  865.00,  and  interest,  due  to-day. 

E.  S.  Smith  i)avs  his  bill  of  Nov.  5th,  1371.28,  less  discount,  5^'  on  the  Regular  iM>rtion  of  it. 

[C.  B.) 

Cash  sales:  1  Cong.  Office  Chair,  18.00;  1  Office  Desk,  45.00.      (T.  B.) 

DECEMBER  5,   188-. 

Sold  C.  A.  Graves,  Bridgeport,  2  No.  48  Oak  Ch.,  2.60;  24  No.  89  Cli.,  13.00;  1  Wal't  Cor.  Stand, 

3.75,  Net.     {S.  B.) 

Sold  Warren  &  Francis,  Jaiuestown,  1  No.  33  Wal't  Wood  Toj)  Suit,  36.00;  6  Com.  S.  B.  Beds, 
12.00,  Regukr.     2  No.  33  Wal't  W.  T.  Dressers,  34.00,  Net.     {S.  B.) 

Sold  W.  J.  Th.mipson,  Barclay,  1  No.  33  Wal't  W.  T.  Suit,  36.00;  1  No.  33  Wal't  W.  T.  Wash- 
stand,  7.50,  Regular.     24  No.  87  Ch.,  13.00,  Net.     (*S'.  B.) 

Cash  Sales:  John  Wagner,  1  W.  T.  Suit,  36.00;  1  Ash  Din.  Table,  18.00.     {C.  B.) 

Bought  Damask,  Jute,  &c.  of  A.  S.  Mann  &  Co.,  by  check,  118.44;  Invoice  tiled.     (J.) 

Deposited  25(K ).()(>.     {C.  B.) 

DECEMBER  6,    188-. 

Sold  Covert  Bros.,  Oxford,  2  No.  33  Wal't  W.  T.  Suits,  69.50,  Regular.     6  No.  59  Ch.,  12.00, 

N\>t.     {S  B.)      ' 

J.    H.   Arnold,  Geneva,  1  No.  2  Couch  iu  Carpet,  9.00;  6  Lounges,  White,  12.90,  Reg.     12  No. 

D.  R.  Ch.,  White,  4.35,  Net.     (,S'.  7^.) 

Daniel  Paine,  Bridgeport,  2  No.  42  Ash  Beds,  18.00;  2  No.  42  Ash  Dressers,  31.00;  1  No.  42  W. 

Stand,  5.50,  Reg.     6  No.  83  Ch.,  9.00,  Net.     {S.  B.) 

Cash  Sales:  Parlor  Suit,  Wal't,  72.00;  Cliaml)er  Suit,  Wal't,  55.00.     {C  B.) 

Warren  &  Francis  i)ay  their  net  bill  of  Nov.  7,  by  check,  216.40.     {C.  B.) 

The  Foreiuan  in  the  Cal)inet  Shop  has  handed  in  the  time  of,  and  amount  due  to  the  following 

hands:  Nier,  10.50;   Brown,  11.75;  J.  Wilson,  12.80;   D.  Wilscui,  6.50;  Meyer,  16.90;   Johnson,  5.(Ml; 

Lyman,  8.30;  Mosier.  14.50.   Thayer,  14.50;  Pease    12.25;  Bartlett,  forenuin,  25.00.     From  the  Ware- 

iiouse  are  added  Hyatt,  Book-keeper,  30.00;  Mory,  Ass't  Book-keei)er,  8.O0;  Hacket,  Salesman,  18.00; 

Pomeroy,  Salesnuin,  20.00.     ((7m///  Col.  H.  11.     See  form,  page  152.) 

NoTK.— The  pupil  will  rule  a  sheet  for  a  Hands  liegister  similar  to  the  form  given  on  page  152. 
Paid  iu  full  all  whose  names  appear  on  the  Hands  Register,  in  cash.   {Debit  Col.  //.  B.  and  C.  B.) 

Balance  Cash  Book  and  l)ring  down  ])alance.  Cash  on  lumd,  1552.35.  Post  Journal,  Sales  Book 
and  Cash  Book,  and  take  a  Trial  Balance.  Give  each  account  one-fourth  of  a  page  space.  In  posting 
the  Personal  Accounts,  enter  the  terms  given  in  the  Memoratidu.     Sm^  Ledger  form  on  ])age  153. 


** 


I 


156 


TIlKniiKTICAL    AND    PliACTICAL    BOOK-KEEPINu. 


DECEMBER  8.   188- 

Sold  Geo.  C.  Lyon,  Fair  Huveii,  2  No.  ;J3  VVal't  VV.  T.  Dressers,  34.00;  2  No.  33  Wul't  W   T    W 
Ntaiuis,  15.00,  Roff.  '     ' 

Iloldricl.ire  .S:  (iruy,  Medina,  1  No.  35^  Asli  Suit,  24.55;  1  No.  50  Sl.elf  Side  Stand,  3.75,  Reff.     4 
N,..  -t4  Ch.,  3.07;  2  No.  27  ('!».,  1.70;  12  No.  87  Ch.,  fJ.SO,  Net. 

o.  J't!\^^'  ^'"^''  ^^'^''^'  ^  ^^"-  ^'^  ^^'^'''  ^^'-  ^^-  '"^"'^^^  ^^^-^^^  ^H'-     1<^  Spindle  IIM  and  Ft  Beds, 
24.00,  Net.  * 

Sent  check  on  First  National  Bank  to  Bancroft  &  Co..  Pittsbur-   for  bill  of  Hanhvare,  318  45 
Cash  sales:   I  Wal't  M.  T.  (M.an.ber  Suit.  llS.oo;   l  \\  al't  J»arlor  Suit  in  Ken,  85.00. 
Bought  new  Planer,  by  check,  875.00. 


Net. 


Net 


DECEMBER  9.   188-. 
Sold  E.  S.  S.nitii,  North  Wilson,  1  Book  Casi',  in  Wliite,  18.00,  Reg.     30  No.  48  Oak  Ch.,  54.00, 

Warren  cSl  Francis,  Janiest«»\vn.  24  No.  87  Ch.,  13.00;  24  No.  89  Ch.,  14.00;  12  No.  80  Ch.,  G.75, 

,  .  x.^*  ^  7''''"'*''''"'  Barclay,  1  No.  42  Ash  an.l  WaPt  Suit,  White,  21.25,  Reg.     2  No.  80  Ch.,  1  08- 
12  No.  98  Ch.,  32.00,  Net.  >    •     . 

Cash  sales:  (I  Dining  (Mi.,  9.00;  1  Book  Case.  Wal't,  45.00. 
Gave  check  for  (>850  ft.  Cherry  Lumber,  d^  48.00  ]»er  M. 
Deposited  1500.00. 

S.  11.  Parker  pays  his  note  of  950.00,  with  interest,  in  cash. 

DECEMBER  10,   188- 

No.  ^^ch'T:;;;^2^i;:^^^       '''-^^-  ^-^^^  ^  ^^-  ^  ^-^-  -  ^-.^t,  1.50,  Re^ . 

309  Ch.^.Oo' Net.^''''^^"'''  ^  ^''  '^  '^'^'  ^^''^''  ''•'"'  ^  ^"^  '^    '^'^  ^''"^''^  ^^'^^^   ^'^S-     4  No. 

Cane^sdc'^  r""''  !!['^'^'^r''n,  ''  ""  ^'  ^'^'"'^''^  ''^'^  '  ^'''  ^''  ^^'^^'^  W.  T.  Suits,  75.0.;    1  Jiunch 
Cane,  80c.,  Reg.      10  No.  309  Ch.,  10.00,  Net. 

Cash  Sales:  1  Tete  in  Jute,  10.00;  1  Ford  Rocker,  8.00;  1  Arm  Ch     G  00 
5J^  jJ^tltlf  bm.^"'"'  '''  *^'    '''''  '"'•'''   '"^  ''*'  ^"'  ^''^  ^^  11)^.10,*  of*  Km.    loth,  less  discount. 

DECEMBER  11,   188-. 

Sold   Iloldridge   &   Cray,   Medina,  6  Ash  and  Wal't  Beds.  30.00,  mnv.      18  No.  57.  C,  in  White 
15.50;  24  No.  25^  Ch.,  30.00,  Net. 

Geo.  C.  Lyon,  Fair  Haven,  12  No.  4  W.  T.  Cent.  Tables,  42.00,  Keg.     24  No.  69  Ch.,  14.60,  Net. 
John  H.   King,  City,  2  No.  1  Book  Cases,  in  White,  37.00;  2  No.  33  Ash  and  Wal't  Suite,  08.50- 
2  No.  98  Ch,,  5.50,  Net. 

Casii  Sales:  1  W.  T.  Wash  Stand,  4.50;  1  M.  T.  Suit,  50.00;  1  omce  Desk,  34.00;  1  Office  Chair 
16.00.  * 

Deposited,  1000.00. 

DECEMBER  12,   188-. 

Sold  E.  S.  Smith,  North  Wilson,  3  No.  42  Asii  and  Wal't  Suits,  03.00;  8  S.  W.  Beds,  24  00    Re^ 
4  No.  43  light  Ch.,  4.50;  4  No.  25  dark  Ch.,  4.80,  Net.  '       " 

W.  J.  Thomps(»n,  Barclay,  2  No.  33  Wal't  Beds,  21.00;  2  No.  33  W.  T.  Dressers,  34.00   Re<r      24 
No.  72.  Ch.,  light,  11.00;  12  No.  72  Ch.,  dark,  5.50,  Net. 

Cash  sales:  1  M.  T.  Wal't  Side  Board,  48.00;  1  Wal't  1).  Table,  24.00;  9  D.  Ch.,  13.50. 

DECEMBER  13.  188-. 

Sold  J.  II.  King,  City,  2  M.  T.  Wal't  Side  Bords,  58.00;  2  Wal't  D.  Tables,  38.00,  Reg.     18  No 
36  Ch.,  24.00,  Net.  ^ 

J.  H.  Arnold  Geneva,  2  No.  33  Ash  and   Wal't  Suits,  04.00;  2  No.  4  S.  W.  Beds,  8.00;  8  Com 
Wash  Stands,  12.00,  Reg.     12  No.  80  Ch.,  12.00,  Net. 

Daniel  Paiiu,  Bidgeport,  2  No.  35  Ash  Suits,  51.00;  2  Wal't  D.  Tables,  28.00,  Reg.     24  No.  44 
Ch.,  28.00,  Net. 

Sales  for  cash:  1  Couch  in  Car]>et,  18.00;   1  Pai.  Kw-Kcr,  z^.vif;  6  Office  Stools,  3.00. 


. 


- 


THEORETICAL    AND    PRACTICAL    BOOKKEEPING.  lo7 

Covert  Bros.  ])ay  their  R.  bill  of  Nov.     3,  less  discount,  in  cash. 

Deposit  in  First  National  Bank,  1500.00. 

Bartlett,  foreman,  has  left  his  Time  Book  in  the  office,  from  which  the  Pay  Roll  will  be  made  up. 
The  hands  have  earned  during  the  week,  as  follows:  Neir,  11.75;  Brown,  11.50;  J.  Wilson,  14.20;  D. 
Wilson,  8.75;  Meyer,  15.50;  Johnson,  0.75;  Lyman,  9.80;  Mosier,  13.20;  Thayer,  10.25;  Pease,  12.50; 
Bartlett,  Foreman,  25.00.  Added  from  the  Office  and  Warehouse:  Hyatt,  Book-keeper,  30.00;  Morey, 
Ass't  Book-keeper,  8.00;  llackett,  Salesman,  18.00;  Pomeroy,  Salesman,  20.00.  Entered  on  Hands 
Register  and  paid  in  full,  in  cash. 

INVENTORIES.  DECEMBER  13,  188-. 

REAL  ESTATE— Manufjictory,  18000.00;  Warehouse,  24000.00, 42000  00 

MERCH AN DISE— Manufactured  Stock  and  Raw  Material, T8104  90 

MACHINERY  AND  TOOLS— At  Cost, ---- 9875  00 

OFFICE  FIXTURES— At  Cost, 850  00 

I NTE RES r— Accumulated  on  D.  M.  W.'s  Note, 

"  "  **  J.  B.  A.'s  Note, 

Balance  the  Casii  Book.  Cash  on  hand,  543.51.  Post,  make  a  Balance  Sheet,  and  ch».<e  the 
Ledger.     Net  gain,  000.50. 

QUESTIONS  FOR  REVIEW. 

•  What  books  are  required?  Which  are  used  as  principal  books,  and  which  as  auxiliaries?  'Describe 
tnc  Sales  Book.  'From  which  book  are  customers  debited  for  i»urchases  on  account?  *To  what 
account  is  the  footing  of  the  Sales  Book  posted?  ^In  what  respect  does  the  Cash  Book  used  in  this 
business  differ  from  the  ordinary  Cash  Book?  « What  do  you  understand  by  "  Regular"  bills?  '  How 
are  purchasers'  discounted  bills  entered  in  the  Cash  Book?  ^  How  are  the  entries  of  merchandise  in 
the  Cash  Book  posted?  MIow  often  should  the  cash  be  proved?  '"What  does  the  Journal  contain? 
Describe  the  Hands  Register. 

After  you  have  completed  the  work  upon  your  books,  present  them  to  the  teacher  for  insi>ection, 
a.id  prepare  for  a  written  examination  in  book-keeping,  questions  for  which  will  be  furnished  by  the 
teacber — selected  from  the  questions  for  review  given  throughout  the  book.  You  will  also  be  re<pjired 
to  make  the  Jo-irnd  entries  for  a  variety  of  transactions,  and  to  draw  forms  of  business  i)aper,  as 
Tetter,  Bill,  iuvoico  of  Shipment,  Account  of  Sales,  Note,  Draft,  Oneck,  Certificate  of  Deposit,  etc. 


158 


THEORETICAL    AND    PRACTICAL    BOOKKEEPING 

BUSINESS  FORMS. 

LETTER  INCLOSING   REMITTANCE 


FULLER  &  HENDERSON, 

AND 

GROCERS  SUNDRIES, 

165  UAIH  STRBST. 


SOCHXSTB,   C^j/r^ 


7a 


2 


^^^^^/ 


J^€r^^^lt;;  Cl^^-iy^ 


..^^^^ 


LETTER  OF   RECOMMENDATION 
Tu  whom  it  mail  Concern:  Carbondale,  Au^^  31,  188-. 

us  Z^nflf^r"  '"  ^^"^'"^/'^^^^  ^'-  ^— •  ''-  I^^'l'i'   ^'-  Ho^-s,  wlio  has  heon  emploved  bv 

f  Tw        \  1^"'V;'"'  I'  ,"*  '"^  '"'^^'"'^^  ^  competent  and  fuitJiful  hook-keeper,  and  a  v.un.  man 
of  the  higluvst  qualities  of  lu-ad  and  heart.  '        " 

Mr.  Rogers  severs  his  eonneetion  with  onr  liouse  to  seek  a  more  congenial  climate,  and  leaves 
hearing  with  h.m  the  highest  regard  of  all  with  whom  he  has  been  associated. 

Itespectfully, 

BEDELL  &  LUSK. 

LETTER   ORDERING    GOODS 
Mr.  Geo.   I».   Osgood,  Kochesteh,  Oct.  4.   188-. 

Chicago. 

-v.  V.  c.  &  ,r.  R.  R.  n..  Ihr'f,!;;:;ivi,"""  ^''''' " " "™  ^  '"'""*'  •■"  ^  •'•  *  *'•  '^-  '"■  ^'-  ■""' 

•toz.  U-,„.  B.  Bowk;  .,  d,«.  N„.  3  Wo.hI  Se«„,«;  25  N...ts  F.  I'aiU;  5  Aoz.  W.  Shovels. 

Kespectfullj, 

FULLER  «fe  STUDENT 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


169 


BUSINESS    FORMS. 

INVOICE  OF   SHIPMENT. 
Invoice  of  Merchandise  shipped  to  A.  O.  Niles,  Evansville,  to  be  sold  on  onr  account  and  risk. 


200  bu.  Potatoes, 
Paiil  Cartage, 

Galesburg,  Sept.   15,   188-. 


charges: 


(B 

65c. 

130 

3 

25 

- 

133 

25 

188- 
ISept. 


0 
12 


6 
12 


ACCOUNT  OF  SALES. 
Sales  of  500  bu.  Ked  Wheat,  on  "{•  of  Foster  Bros. 


Sold  for  cash. 

200  bu.  Red  Wheat, 
Sold  for  cash, 

300  bu.  Red  Wheat, 


Paid  Freight, 
Storage,  2^c.  per  bu., 
Commission,  2  %  of  Sales, 


Foster  Bro's  Net  Proceeds, 

E.   E. 

Galesburg,  Sept.  12,  188-. 


@ 

1.37i 

274 

50 

T    (J. 

WILLI  A.\ 

1.3Ti 

50. 

12.50 

13.73 

411 

75 

charges: 

686 
76 

25 
23 

LS. 

HERBEH 

610 

02 

i-.l?  s      ^"-  ^^67. 


=  2-59    K    £ 

>.  C  O  08       n    •TZ 


BANK    DRAFT. 
MANUFACTURERS   AND    TRADERS    BANK, 

of   MINNEAPOLIS. 

196.38.  Minneapolis,  April   12,   188-. 

Pav  to  the  order  of  Erastus  W.   Cleveland,  Ninety-six  and  yVo   l>>^dlars. 


To  BiiOAinvAY  Bank,         ) 
New  York,  f 


J.  K.  COMPTON, 

Cashier. 


c 

i| 
IsC 

11 


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4 


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FORMS  OF 

INDORSEMENT. 

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TIIEOUKTICAI.    AND    PR\(riICAL    K<K)K  KKKPING. 

BUSINESS    FORMS. 
BILL. 


rULLER  &  HENDERSON, 


RQCHESTES,    Gc/rcf./rr- 


GROCERS'  SUNDRIES. 

1S5  HAIH  STRSST. 


FOLIO 


SALESMA 


FULLER  8e  HENDERSON. 

N     f^-T^^.'^U^'Jy    TERMS     (// ^Z 6 ^^  ^/j,  / i^ dJ^ -^ /"  <^-i<-d^ 


^  A..  Olr^^  Q.  Oh'Si^^ii 


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CERTIFIED    CHECK. 
I14T5  54  Syracuse,  July  K),   188-. 

CENTRAL   CITY   RANK, 
Pay    to    Bliss,   Croodricli    &    Co.,   or    order,    Fourteen    Hundred    Seventy-five  and    ,Vt, 

Dollars. 
No.  602. 


EVANS  &  KINGSBURY 


CERTIFICATE    OF    DEPOSIT. 


1500.00. 


Detuo'T,   May  '.»,   188-. 


SECOND   NATIONAL   BANK. 

Samuel   Ro})erts,  Jr.,  has  dejjosited    in   this   Bank  Five   Ilundre.I   Dollars,  payable 
to  himself,  or  order,  on  return  of  this  Certilicute.  ^^^    hINMAN 


I 


INDEX. 


Account  Sales,  explanation  of 55,  56,  57 

forms  of -  80,  159 

Bank,  rule  for  journalizing. 27 

examples  in 28 

checks,  form  of 28,77,160 

draft,  form  of -  159 

Balance  Sheet,  guide  for - 32 

form  of  -  - -  - - -     ^^ 

Bill  Book,  explanation  of 05 

form  of - ^1 

Bill,  formsof  ..-.-• ----  80,  160 

Commission,  explanations  and  examples -  -  -  55-57 

Sales  Book,  Cash  Book  and  Journal  as  principal 

books 117-125 

Consignments,  rules  for  journalizing. -     55 

examples  in  journalizing  — -  -  -  56-57 

Cash  Sales,  Note  4.. 65 

Cash  Book,  explanation  of ~2 

form  of 78-79 

items  not  posted  .  - 74 

Cash  Method,  explanation  of 109-1 12 

form  of  Cash  Book 110-111 

Check  Sheets,  explanation  of  and  form  for 134 

Certificate  of  Deposit,  form  of - 160 

Draft,  explanation  of - -     41 

formsof.. - 41,  79 

rules  for  journalizing 41-42 

examples  in  journalizing 42-44 

Due  Bill,  payable  in  goods  * 78 

payable  in  money -     78 

Errors  in  Trial  Balance,  how  found 21 

Envelope,  form  of 77 

Executor  of  a  Will,  books  of. 99 

Inventory,  explanation  of 31 

liability ---     67 

Interest,  how  computed.  365  days  basis .     25 

how  computed,  360  days  basis 89 

time  for,  how  found -  -     51 

accrued,  how  treated 65 

on  partners'  accounts 

Indorsement,  forms  of 159 

Journalizing,  general  rules  for. 6 

special  rules  for 6 

examples  in 7-12 

directions  for 16 


Journal,  combined  with  Day  Book,  form  of 64 

explanation  of  Note  1 65 

Ledger,  rules  for  closing 35 

guide  for  closing 36 

closed  form  of ---     38 

partially  closed ^^ 

closed  directly  to  proprietor's  account 70 

Letters,  forms  of 77,  158 

Miscellaneous  Accounts,  form  of -  108 

Manufacturing,  explanation  of  books  u-^t'd -  151 

forms  of  books  used l."32— 1.53 

Note,  ordinary  promissory,  form  of. 21 

joint 78 

joint  and  several ---     78 

n  on -negotiable '^ 

Order,  payable  in  money --     78 

payable  in  goods  78 

Posting,  explanation  of - 1* 

guide  for 17-18 

with  Ledger  explanations .- -  67-68 

Partnership,  explanation  of -    44 

profits,  division  of - 48 

interest  on  partners'  accounts -  141 

Protest  Fees,  how  charged -  52,  74 

Petty  Ledger,  explanation  of -  -  -  103 

form  of - 1^ 

Receipt  for  payment  on  account .-     78 

for  paj'ment  on  note - 78 

Retail  Business,  explanation  of  books  used .  -   143 

forms  of  books  used 144-147 

inventories,  how  treated 150 

Shipments,  rules  for  journalizing 55 

examples  in  journalizing - 5.>-56 

inventory  of . ^ 

invoice  of —  159 

Single  entry,  explanation  of 81 

changing  to  Double  Entry 85 

Cash  Book ^ 

Special  Column  Journal,  explanation  of 93 

form  of 94-98 

Trial  Balance,  explanation  of 20 

errors  in j..,.j.i.., —  j.,. .,i,'«.,..,    j«i , 

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Ledger  balances ',..-•....:: ... i ^ /.  •..i.\.:   :«> 

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